What are the benefits and disadvantages of DLP technology in projectors?

Benefits of DLP Technology

There are several unique benefits that are derived from DLP technology. One of the most obvious is small package size, a feature most relevant in the mobile presentation market.
Another DLP advantage is that it can produce higher contrast video with deeper black levels than you normally get on an LCD projector. DLP has ardent followers in the home theater world primarily due to this key advantage. A third competitive advantage of DLP over LCD is reduced pixilation. These days it is most relevant in the low priced, low resolution SVGA class of products.

Disadvantages of DLP Technology

If there is one single issue that people point to as a weakness in DLP, it is that the use of a spinning color wheel to modulate the image has the potential to produce a unique visible artifact on the screen that folks refer to as the "rainbow effect," which is simply colors separating out in distinct red, green, and blue. Basically, at any given instant in time, the image on the screen is either red, or green, or blue, and the technology relies upon your eyes not being able to detect the rapid changes from one to the other. Unfortunately some people can. Not only can some folks see the colors break out, but the rapid sequencing of color is thought to be the culprit in reported cases of eye strain and headaches. Since LCD projectors always deliver a constant red, green, and blue image simultaneously, viewers of LCD projectors do not report these problems.