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1080p projectors are still up there in price well above $1000 but the bigger improvement is light output and contrast ratios. They have improved that dramatically and even the 720p projectors of today will blow away what you have now.
 

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Ok well, Here is your current projector. Its 1500 lumens with a contrast ratio of 2500:1
Here is the Panasonic PT AX200U. Its less expensive and is 2000 lumen at 6000:1 contrast ratio.
How large of a screen do you have?
 

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That Panasonic for the price is hard to beat. With a 102" screen you would be hard pressed to see a difference between a 720p projector and a lower end 1080p projector.
 

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Some say over 100" but others say 110" and it depends on alot of other things like screen design and the projector its self. I myself would love to upgrade my old Sanyo Z2 720p as its only 800 lumen but that would be a very tough sell to the wife. The good 1080p projectors are well out of my reach.
 

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I personally would not go larger than 110", I sit 12' away (front row) and have a 96" and find that very nice and I dont find myself moving my head much to see the entire movie.
 
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