The SF Gate admits that Star Wars on a digital projector makes a big difference:
From the first explosion in "Star Wars: Episode II -- Attack of the Clones," when a sabotaged spaceship blows apart in a fireball, the difference between celluloid film and digital is clear.
The celluloid version of the blast looks like what it is -- a special effect. The digital version takes on a life of its own, seeming a lot less like something that was created in a movie studio.
Lucas has been pushing digital projection for years, filming "Episode II" with digital cameras and hoping that theaters would be equipped for the movie's release. Theater owners have been resistant to the technology, arguing that the expensive digital projectors aren't always as sharp as the old 35mm celluloid versions.
Watching "Episode II" on both kinds of projectors, it's clear that some movies -- at least the ones Lucas makes -- look better with the new technology.
Take any "Episode II" scene on the overpopulated planet Coruscant, where the Jedi and their friends spend most scenes standing next to giant picture windows. The rows of spaceships in the background, which don't jump out on celluloid, look like an endless sea full of fish on digital.
An even bigger difference comes in the final battle scenes -- particularly the ones with thousands of combatants. On celluloid it's almost too much to take in -- the lack of definition makes it difficult to figure out what's going on. On digital each little clone trooper stands out.