You know, that's not the craziest idea in the world - there might be some chance of that type of approach working:
Theses are 8mm, 3.4V, and 300mA:
http://www.ebay.com/itm/30-PCs-1W-8m...ht_3769wt_1163
So they might actually fit reasonably well in the original diode positions.
The original ribbon cable is going to be no good though, because series wiring these LEDs would overload them with current. I *think* these LEDs would work in two parallel lines of 3 series LEDs. Running that config at spec would imply current of 600mA, and about 10V dropped. If some basic diodes were added to the circuit to drop another ~10V, I think the projector would behave just fine without tripping a temp alarm.
24 blue LEDs might be easier to focus than 4 blue emitter plates. I'm not suggesting the output would be anywhere near as bright as the laser diodes, but it might actually *work* to some degree.