4K is the equivalent to film resolution in terms of the "magic number" to not seeing pixels on a large cinema screen. This projector is basically Sony's flavor of LCoS so the pixels are densely spaced together on the imaging device - unlike LCD which still sports a "screen door effect" upon viewing at closer distances.
This is mostly news for professional theaters, but like THX and DTS, watch for these advances because it's an indicator of what will eventually trickle down to the home theater market.