The trend these days in pico projectors is bigger, brighter, and more affordable.
Take Acer's new $259 100 ANSI lumens C120 projector. It's slightly bigger than some of the early ultraportable pico projectors, but it's still very compact, measuring 1 inch by 4.72 inches by 3.23 inches (HWD) and weighing 6.34 ounces. It has native WVGA resolution (864x480) resolution, but Acer says you can upconvert to WXGA (1,280x800). Also, the projector has a USB power option if you want to connect it directly to your computer sans AC adapter.
It's worth noting, however, that if you do go with USB power, you can't project at full brightness; you get bumped down to 75 ANSI lumens.
We're not sure how good the picture quality really is since we haven't seen the projector in action. And we don't know a few other details, like whether it has a built-in speaker or not and what, if any, adapter cables ship with the product (connectivity options seem limited).
If and when we get our hands on a sample, we can put this little guy through its paces and let you know what we think. Until then, have a look at its key specs: