sounds like a good deal... I know my 1080p 47" vizio LCD was like $600... def not top of the line but it had the features I wanted and it was a Christmas gift ;-)
DLP is the best bang for the buck when it comes to inches... you can buy a used one for super cheap when someone upgrades to a flat panel... I know the one big issue is the bulbs have a fairly short life... they aren't expensive or hard to replace (for a typical GRM guy) but that doesn't stop people from nearly giving them away.
after that plasma is the cheaper of the flat panel options... uses a bit more power and has the glare on the screen but known to have much better picture quality and better blacks and can suffer burn in (always amusing to look at the display plasma TV's at the store when they've had the demo mode on... you REALLY can see how bad the burn in can be lol
LCD uses less power, not subject to burn in, doesn't get true blacks, can have motion blur etc etc... although I don't notice the motion blur while shooting peoples faces off on the xbox ;-)
LED = an LCD with a LED backlight... and more energy efficent still few other perks but none worth 2x the $$$ to me.
anyway... for how much they gave you you can replace it with a new same size or bigger.
or you can go used DLP, get something bigger and save some cash