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I think all the video lovers or holiday goers would love to have one of these mobile projector connected to a PMP player...........and enjoy VGA resolution images at as large as 40 inches.
I wonder how much the unit cost...........I think it would be fantastic to connect one into our next generation PMP 
For more information, see here or see video demo here.
Update: I personally think such mobile projector will never take off.
Why?
Such mobile projector's specification says it only has of only 7 lumen.............whereas standard projectors have brightness rated in 1000+ lumens. So, for the mobile projector to be useful, I believe that the room would have to be in complete darkness.......
For more information, see Gizmodo, Digitimes or join the discussion.
Or see Explay who is going to release a Portable Projector in 2008.
Update: 7th June 2008
"Suniview PMP Projector, which claims to be the first portable media player to incorporate a pico projector under the hood."
From Cnet.