Hot on the heels of the Optoma pico-projector that uses a TI chipset, TI itself has announced the "industry's first home-theater lamp-free projector." It uses a PhlatLight LED illumination source instead, and a Brilliantcolor chipset to give a 1080p display. This makes it capable of a 50% bigger color gamut than traditional projector tech (that's over 200 trillion colors!) and a contrast ratio that can go up to 500,000:1. The lamp-free bit is the part that will interest consumers: as well as not requiring expensive new bulbs, the LEDs consume far less power so you'll pay for less electricity if you're a heavy projector user. Apparently "multiple DLP customers" are expecting to launch projector products with the tech late this year. [Digitimes]
@Player4: The rainbow is the result of the color wheel used in DLP, not the source of the light. Some people are simply more sensitive to it than others.
DLPs do not project all colors simultaneously. The source light is white (regardless of whether it originates from an LED or incandescent lamp), shined on the DLP chip, which cycles its mirrors in sync with the color wheel, so that the image reflected matches the appropriate color grade for each pixel passing through the color wheel for whichever color is up on the wheel at that time.
The entire system then depends on a kind of persistence of vision by the human viwere to combine the three primary additive-transmissive colors passing one at a time through the spinning color wheel into white light.
As a result, quick eye movements result in the the blue hitting a different part of the retina than the green and then the red, which gives you the rainbow effect.
If they used a three-chip DLP solution similar to some Sony LCD projectors, ensuring all colors are transmitted simultaneously, instead of taking turns through a color wheel, it wouldn't be an issue. I'm not familiar with any 3-chip DLP projectors, however. If they existed, they could each use individual blue, green, and red LEDs, or still use a single light source with their own stationary color filters for each chip, instead of sharing a spinning wheel.