"Will rear-projection TV sales plunge to near zero within the next 48 months? That's what a new study from IDC Group claims. With ever larger plasma and (especially) LCD flat-panel HDTVs becoming ever more affordable, IDC sees sales of RPTV sets--those utilizing DLP and LCoS microdisplays--dropping to under 30,000 units by 2011. That's a dramatic drop from the peak of 3.51 million sold in 2004 (according to the CEA)."
As the owner of a 72" DLP (rear projection) TV, this news doesn't surprise me - since rear-projection TVs have been on the market, they've represented the greatest combination of value for the dollar if you're looking to go big - yet as LCD and Plasma TVs get bigger and cheaper, the rear-projection advantage gets smaller and smaller.
There's also the issue of moving parts - my local electronics chain is now only offering two year warranties on all rear-projection TVs, killing off their three and four year extended warranties because they were costing them too much money. My Samsung DLP had to have its colour wheel replaced, which was a $1200 part. Rear-projection TVs are going to fade away, but before they do, they still represent a great value for the dollar if you have a big room that needs a big TV. Just be sure to get that extended warranty!