It’s not the sharpness of digital images and movie projection that bothers me, it’s the way the technology handles the out of focus areas of the screen.
For me, the artifacting, ugly squares, and other pukey patterns formed in the indistinct areas of the projected image distracts me from what is being projected.
Like the compact disc, there is an arbitrary level, after which detail is discarded, and that sudden dropoff can be disconcerting.