I think there is some romantisicing going on with some DVD players though. Fair enough the ones which can upscale or feeding a decent old DVD player into a TV or amp which can upscale brilliantly, but all I know is, I sold my old Denon DVD-A1 (worth £2,500) once I got my new HDTV because the PS3 gave a better picture. Now I know now that the TV I have has a pretty s**t internal upscaler, hence the reason why the PS3 looked better and I'm sure if I was now plugging my old Denon into my new Onkyo 905, it would be better than the PS3, but I'm unconvinced it would be so much better to convince me to spend that amount of money for a new DVD player...
IMO, if you're buying a new player under £1,000, you'd be silly not to get a Blu-Ray player. Decent ones will upscale DVDs as well as you could need and you can take advantage of a whole new league of sound and vision in Blu-Ray films.