I hate PWM car taillights, but I doubt that LED screens will have the same problems. PWM is not the only way to control LED brightness and even PWM can be OK if the frequency is high enough. Also, projectors already flicker.
[1] https://electronics.stackexchange.com/questions/256336/does-...
PWM is done because it's cheap to implement given a fixed power rail and a digital control : need a single/couple of power switches that can even be integrated on die for low-ish power targets. continuous things usually need some kind of discrete filters, that means more components etc
http://www.eizoglobal.com/library/basics/eyestrain/index.htm...
I never tried them though.