I prefer my HTPC over my previous Panasonic S97S Upconverting DVD player. The Panny did a good job, and for people that don't want to mess with computer configuration, might be a good option.
My HTPC combined with TheaterTek DVD Software gives me much better quality than the DVD Player. Once you adjust your Computer resolution to match the native resolution of the projector, and get the latest drivers, the picture is great.