There were a few things wrong with them (painful to look at while operating, and the bulbs tended to burn out if you moved them around while turned on) but fundamentally I don't think they were broken technology. Overhead projectors would be well complimented by computer projectors, but computer projectors make a poor replacement for them. Attempts to replicate the advantages of overhead projectors on computer projectors always fall flat, as far as I have seen.
I think the demise of overhead projectors is an example of a regression caused by our tendency to have rose-tinted glasses whenever considering more technological alternatives to existing technology.
The advantage of these over overhead projectors would still be pretty small though (really only the being blinded and replacement bulbs issue), so you would need to ensure that the system is rock-solid reliable. If not, then you've just made it worse by making it more advanced.