OK, getting there now. Trying to be objective and undestand end-to-end process.....
The PJ is the D-ILA 1080p aka MF1, a Meridian-badged, Faroudja-engineered JVC HD10K - cost ~$21k. The procesor is the matching DVP-1080p - cost ~$5k. The first PJ did not work so it was replaced. The second PJ would not talk to the processor so that was replaced. And this combo worked? Was the replacement done in a timely manner? Who did the install - the customer or the dealer? There are obvious concerns here about quality control in manufacture and pre-delivery testing but if the result was something that worked as sold in a reasonable time - what is the problem? If Meridian had to facilitate that resolution then I am sure they know how to manage their dealer base.
Then there is the entirely separate question of the ability to handle/process 2.35:1. I don't know or understand the technology but it is not about that, it is about what the vendor promised the customer. And how much its absence hurts. Attorneys on stand-by. If Meridian have determined that their 2.35:1 solution is not ready for market then that is a better call than to launch something buggy?
So I think the statement "M really can't do video" comes down to:
(1) they knew they needed projector expertise and bought it in
(2) they may have yet to address quality controls at that acquisition
(3) they are being cautious about bringing out new features on that kit
(4) this instance is a single unfortunate one combining two separate problems with multiple interested parties.
I think it is reasonable to reject the title assertion unless or until we see significant evidence to the contrary (i.e. more cases of the same) or if Meridian don't start to wow the market with their own new leading edge high-end PJ products to match the sources.
Myself, I now know Grahams (N. London UK) have this combo installed and researching for this thread I now know prices and capabilities so I may be taking a trip to demo it. So my interest is piqued....thanks to Gary.