We may have to wait some time before pico-projector technology finds its way into mobile phones as a standard feature, but until then products like the sparkz iPhone/iPod dock projector will help fill the gap. The handheld 4.5” x 3” x 2.5” unit uses a 3M LcoS projection engine to throw a 640 x 480 (VGA) or 1024 x 768 (XGA) at a brightness of 15 lumens - so you'll need to draw the curtains and dim the lights before the show starts.
The sparkz supports all generations of iPhone and video equipped iPods and can play a range of multi-media devices such as camcorders, laptops and game consoles via AV and VGA inputs.
The unit also includes built-in external stereo speakers, audio out, manual focus adjustment and ships with a mini-tripod. The rounded base is also removable so you can still use it on any flat surface without using the tripod
Batteries are good for 2.5 hours of video the run, LED life is specified at 50,000 hours and while the dock charges your iPhone, it wont sync with a computer.
Sharing your iPhone experience with friends is going to require a substantial outlay though - US$495 to be precise.
See the sparkz projector unboxed and in action below, where it appears to do an adequate job of projecting a 60" image in a dark room.