Originally Posted by
Abuzorg
I didn't think it through when I posted my first comment, but it's actually more complex than I initially meant.
Correct me if I'm wrong, but I think that by RAW, the invisible condition doesn't actually prevent enemies from determining in what space you actually stand. Since the wording of this version of Displacement prevents you from hiding, all it does is essentially making you invisible right next to an image of you, giving your enemies an even more obvious indicator on where you stand. If the Displacement is momentarily cancelled, you then have to use a bonus action to re-establish this half invisibility effect. It still might be worth a 3rd level spell since it's concentration-free, but I don't think so. Maybe it would be ok the only thing that can cancel the Displacement is you being hit, just like a Displacer Beast.
What I meant with my variable adjudication comment is that I don't think that most people play the invisible condition that way since it is not that obvious that this is the RAW interpretation of the condition. What would then happen is that a GM could come up with various ways that it would be possible to figure out where exactly is the subject of Displacement around the projected image.