atomicat10- Theoretically, a 2000:1 contrast ratio compared to a 500:1 contrast ratio would have a better color representation given that they have the same technology like LCD. But your question has 2 different factors like a higher contrast ratio and also using different technologies such as DLP vs. LCD.
Here is a good comparison of the different
contrast ratios so you will have an idea.
Check on this
link for more info regarding contrast ratios.
Here is a good comparison of
DLP vs LCD projectors.
If budget is not an issue, then you would widen your choices like maybe purchasing the Panny AE900 (LCD) which had a lot of good reviews from our fellow members. Other options would be the Infocus Screenplay 4805 (DLP) which had garnered good reviews of its own.
I had my own reasons for purchasing the EMP-S3 like budget, price of replacement bulb, local customer support and also the performance. I am happy with my purchase. I have just shifted to an HTPC which really improved image quality of my pj compared to my standalone DVD player with progressive scan. There are really a lot of options to improve your set-up more like buying a video scaler or an upscaling DVD player, shifting to HTPC, room treatments/darkness to maximize the performance of your PJ. I hope those links I've presented would help you in your decision.
The bottomline is audition....audition then decide. Good luck bro on your hunt!