Over all, the sharpness is very good. Mind you, to our current knowledge, this is the only 720p all-in-one projector sold in the US at this time. Optoma who has made several all-in-ones over the years, has been quiet, and they never have had one with HD resolution.
The projector's convergence is off a fair amount - close to a pixel, which likely adds a touch of softness. Of course, on the high def content, a 1080p projector will normally look sharper, but, having worked with 720p projectors over a full generation, there's nothing wrong with this Epson's overall sharpness.
Yes, almost any comparably priced DLP home projector will look as sharp, or a touch sharper, but not enough to impact viewing enjoyment for the normal target market for the MovieMate.
For your consideration, our usual close up images, with all but the MovieMate, being stand alone projectors.
Left: MovieMate 85HD, Left Center - Optoma HD71 (720p), Center Right - Vivitek H1080FD (1080p), Right - Vivitek H1080FD (1080p)