I have been a home theater buff for as long as I can remember and have owned many types of projectors ranging from budget oriented BenQs to professional level home cinema equipment (Epson ProCinema 6xxx).

Out of the lot, I like the sharpness in DLP Projectors and contrast / dynamic range in 3LCD ones. However, single chip DLPs have many other desirable characteristics such as sealed light path, durability, reliability and small form factor to name a few.

Now how can we make DLP projectors with better blacks, contrast and dynamic range?

By arranging two DLP chips in series (Image from DLP Chip 1 is focused onto DLP Chip 2) as depicted in the attached illustration, we can increase the projector's performance characteristics exponentially. Ink blacks and a very high native contrast ratio are now achievable without any trickery.

This method will introduce some complexity (panel alignment, clock sync, etc.) but should be well worth it and is still simpler than competing 3 chip designs.

PS: For those of you who would like to dig deep, DLP / DMD chips are nothing but PWM devices for light. And combining two PWM with different base frequencies and delays can achieve lower noise and higher resolution. Ref - http://goo.gl/pzVlcY