Both DLP and LCD requires lighting control for the best picture during daytime viewing. This is related to the brightness of the projector not really the technology, DLP or LCD. My old 400Q had a max of 400 Lumens. The PLV-Z2 has 800 Lumens. Most DLPs are a little higher, but not by much. If lighting is an issue I think the PLV-70 with 2200 Lumens is the best value at ~$4k.
I am happy with the black level on mine, it is much better than the 400Q. Is it as good as DLP? I don't think so, but it is getting close. I have also heard that DLPs give some people headaches and there is color problem refered to as "rainbows". I have never seen the "rainbows" first hand.
If I had the extra money I would have bought a WXGA DLP, but for now I can spend $2k and get nice LCD and look at DLPs a couple years from now when the prices start droping. Also, both technologies will just get better and better. I still can't believe more people do not go the front projection route. I think a lot of people have the missunderstanding that it is to expensive or that they are a pain to setup.