DLP projectors are better at
edge blending due to them having a less noticeable "
screen door
effect" of seeing individual pixels than with a
LCD projector. LCOS projectors are also good with this, but you have much more limited options with that technology.
There are a couple of challenges with single-chip
DLP, as I see it. One is the choice of color wheel. There are several different color wheels based on what the manufacturer feels will be the main content being shown on the
projector. The color wheel is also often the fastest
point of failure on the
projector. Since you have only a single chip, your color brightness drops significantly from your white brightness. This is probably my biggest concern with using a single-chip
projector outside of the
boardroom or home theater.
Normally I prefer
DLP over
LCD due to the
image quality and long lasting nature. However, with a normal production schedule, you likely won't be using an
LCD to the
point of burn through on the panels, plus we aren't comparing a 3 panel to a 3 chip right now.
Another benefit of using the hardware blending (instead of software blending) is that you should be able to blend your black levels (raising them) as well as the white levels. This will be very noticeable every time you need to go to video black where you will see the brighter greys where you are blended if you don't match black levels.
I am concerned with rear projecting on a
cyc. Since this material is generally not intended for passing an
image through, you are going to lose a lot of your
intensity. I would try to measure how much you can successfully
pass through before making the investment. Maybe you can check with your supplier and see if you can get a demo model or two to
play with. This will let you see what kind of expected results prior to spending your budget.