When DVD came out, many people decided to dump their LD collection but I decided that the difference in quality wasn't worth going through the pain of replacing my discs - besides which there were plenty of movies on LD not available on DVD for a good long time such as Star Wars which took years to come out.
I still have my Pioneer DVL-919E which is a LD/DVD combi player and automatically flips LDs, has a digital field buffer so can do CAV style effects on CLV discs and is also PAL/NTSC compatible which was a big deal at the time because many films were only available as imports from the US when I was living in the UK. The arrival of multistandard players really opened up the LD market outside the US. About 80% of my collection is NTSC. The player was the last model made and I had it chipped so it is also region free for DVD so for a good long time it did a great job of playing every disc I threw at it. Compatible formats are CD, Video-CD, CD-Video (LaserDisc video recorded on a CD sized disc, I have three examples), LaserVision/LaserDisc with analogue or digital audio, some LaserDiscs with Dolby Digital AC3 5.1 surround and others with DTS, as well as DVDs with DTS or AC3 audio. I have about 200 LDs and some 1000 DVDs. I also have examples of other formats such as the mentioned CD-videos, VideoCDs (MPEG1 on a CD) and later formats such as the sadly missed HD DVD and the inferior region locked Blu ray.
I've had a variety of projection systems and LD stood up well for its time. I remember playing Jurassic Park on a 150" Barco and it was way better than VHS while at home I'm on my third InFocus DLP projector - the current one being a 720p In76 which I picked up four years back now. LD needs a bit of help in the noise department for a large screen (mine is 100" 16:9 ceiling mounted) so I drive the projector with the analogue S-Video input and have a bit of noise reduction on to tame the chroma noise but overall LD still doesn't look terrible. For DVDs these days I use a Panasonic Blu ray player which is region free for DVD while being stuck at region B for Blu ray which is probably why I haven't bought as many BDs as I might have done. I also have an HD DVD drive attached to my Xbox 360.
I try to make sure all my formats are playable through my LCD TV and projector so currently I have TiVo, SVHS, LD, DVD, HD DVD, Blu ray and AppleTV.
Yes, I'm a bit of a collector and I do have a soft spot for LD since it was the first properly good quality home video format which was better than broadcast TV and also the first format you could buy films on in their original aspect ratio, with DTS and AC-3 surround. Happy days.