I completely understand the price issue. There is a "cheaper" option with the LS300 as opposed to this LS500. Same foundational technology.
These projectors do not use Dithering for color. They use 3 different LCDs for each primary color. I can't find any information regarding laser projectors using PWM. I always have the laser at full power as it is the default in both of the stock modes I use (Bright Cinema and Game).
The only modification I have made is turning off motion interpolation. In Bright Cinema, it is on the lowest setting, but I don't ever care for any manufacturers version of it. In game mode, it is off intentionally.