Currently, LCOS technology & associated products are reasonably good. The JVC 52" and 61" LCOS/D-ILA rear projection sets are (for the most part) great. They're 3-chip 1280x720 native sets with great colors, very smooth gradients, accurate grayscale tracking, very high fill rate, and, of course, no rainbows. They're also competitive price wise with the DLP offerings.
The Philips single chip LCOS set, I'm not quite as impressed with. It uses a spinning prism to separate out the colors, which is more resistant to rainbows than the spinning colorwheel that DLP's use, but it's not perfect. Also, the colors are a bit more cartoonish (is that even a word?). On the flip side, their chip is FAST. We're talking 1ms total average response time fast.
The Mitsubishi 82" LCOS set, I'd say, don't bother, unless you need an 82" $20,000 TV set in your house.
Sony, we're still waiting on. Get your SXRD b*tt in gear, Sony! Not everyone can afford your $25k Qualia 004!
Intel is delaying because they (wisely, IMHO) decided to skip over the current 1280x720 generation, and develop directly to 1920x1080. There's really no advantage for them, financially, to shoulder their way into the already very crowded 720p arena.
The real problem with LCOS is the yields. It requires a very VERY good FAB to get the kind of yields it takes to turn a good profit. Intel has the world's best FAB's, but whether or not they'll be able to transition over to LCOS production remains to be seen.
The second, much smaller, problem with LCOS is the optical block. They MUST align and glue the optical block correctly from the factory, or the red, green, and blue will be off. If it's half a pixel or less, it's not a big deal. If it's bigger than that, it's ugly.
Edit: Oh yeah, about price drop for the holidays. Yeah, prices are definitely falling all the time, but we should definitely see a price shift industry wide, including DLP's, for the holiday season.