No, these guys aren't arm wrestling and that's not a jumbo-sized DLP chip. They're excited because the new 1080p DLP chip that Texas Instruments recently intro'd is already impacting the projector market. Over in Taiwan, Optoma is planning 1080p projectors that will be priced 40% less than today's 1080p models. It will take some time to get the new chip integrated into the manufacturing cycle, so we won't see these new projectors until 2Q06.
Here in the U.S., we might not even see these particular models, but companies start dropping prices for 1080p projectors like this, competition and the free-market will take over. This is bound to have an impact on the lower resolution 720p projectors also. If you can get a higher res pic from a 1080p for just a little more money than a 720p, the demand for the 720p's will have to drop. Unless they phase out completely, which is doubtful, we're looking at some price drops there too.
Thanks to James for the tip!