1080p is out now, and more importantly it is not going away anytime soon. Whether it be downloadable video content or movies on Blu-ray Disc - it is now available, and is likely to be far more available as time goes on. Not less available.
For content, it depends on what you watch. Movies on HD discs (HD-DVD or Blu-ray) are 100% HD at the highest levels. Fantastic! Almost every prime time show is shot and shown in HD. Recently we just got WB, MTV, and TNT in HD to go along with Fox, NBC, ABC, CBS, PBS, ESPN, and some movie channels. About a dozen stations only... but they are the stations we actually watch at prime time - and they are the ones that carry 'The Game' - you know, the ones you gotta see. Almost always in HD.
3. 1080p projectors are pricey (as said above) - around $10K on the cheap side. They are also NEW. So, I wouldn't be hot for one right now unless I had a fair bit of disposable income. But, 720p projectors are readily available at very good pricing. The Sanyo Z4, Panasonic AE900, InFocus IN76, Optoma HD72 or 7100. A list of other models as well. The key that you want is a projector designed for home theater, not for business.
Your point about the cruddy Navy projector is typical. I have seen (and worked on) military A/V and it is NOT about video quality, but a bright image that gets the job done. I have seen serious color shifting, I have seen dead pixels, and most of all, I have seen lousy connections. The home theater focusses on a 100% dark room, a projector designed around video quality first and foremost, and a user who is willing to feed it the best possible source. You downloading a cruddy video, feeding it to a cruddy projector, using a cruddy connection... and it looks BAD? What ARE the odds?!?
IMO, there are projectors from $1,700 -> $3,000 that all offer something within their price that is worth having. A lot of research on your part will deliver exactly what you are looking for.
Finally, I would get a Carada screen over any others. For the money, there has never been a screen that I have seen that looks better. Similar to the nice Draper, DaLite, and Stewart screens that I have seen - for less than half the price! The size of that screen should be based on primary seating distance.
There is lots more info here and at Projector Central that is worth reading about - but the bottom line is that a good HT projector in a 100% dark room looks similar in video quality to a nice plasma or LCD display. It is bright, colors are accurate, and it looks phenomenal with HD material and well upconverted DVDs.