IMHO, digital projection is the future. There are several innovative ways (like light valves and lenses, of course) to display the high resolution images that are initially created in very small digital display chips...

HDTV is 1280 X 720 or 1280 X 768, so 2048 X 1080 would not be something unusual! I was working with a company that could do even higher resolution digital projection displays and Lockheed already has even higher resolution (4000 X 2000) digital cameras then what is presently being used by the film industry...

Note that most films are already being primarily captured and processed in digital. It only goes to traditional film at the last stage of the production, so avoiding that and projecting it straight into the big screen as a HD digital image is the last step for an all digital experience...

Besides, that would also allow for average low end producer to show their own materials in a big screen format. The problem is that Hollywood has been fighting this for a long time now since they do not want to lose their monopoly!