Having been through a dozen PJ's over the past 5 years (went through 10 in the first 4 years alone) you could say I'm still looking for the holy grail of PJ's, but until I find it, the Sim2 is more than acceptable.
The processing is excellent, and certainly good enough to take the VP out of the mix. I can see the VP being of value with some content, perhaps older DVD's, but as you know, the more complex the setup the more potential for problems , especially when components all need to "talk" to each other. I always try and keep the setup as simple as possible. Of course VP's have value beyond just processing (color correction, AR control, etc.), so they still have a place in many systems.
I also like the addtional CR I'm getting from the HT5Ke and the ansi is particularly good (600+), which I couldn't get close to with other PJ's I looked at, including one at over $100K. Prior to about 2 years ago, even the high end units were averaging CR's of 2000. The Sim2 Lumis has a stated CR of 35,000 (and JVC has lower end units at 50,000; 75,000 and 100,000!! Of course there's a light output trade-off with these improved CR's). We've come a long way in 5 years. (Because of their overall performance, I've sold 7-8 Lumis PJ's in the past year.)
Yes (I'm doing 2.35), and the HT5K allows for several completely customizable AR's. I've got the usual preset (16:9, 2.35, 2.40), and I'm using the Isco III anamorphic lens with a Cineslide. Screen is native 2.37 (because of the A-lens), with 16:9 masking (I don't mask 4:3, because I don't watch that much and when I do I have a Sim2 preset AR to fill the 16:9 image.
Jim