If you are truly reaching the unchurched, they won't be able to ask for hymnals, as they won't know what they are!
If it's harmony, try... http://www.paperlesshymnal.com/ - or create it yourself (which is what I do).
As for "wasting" money on hymnals - I bet you could get a great deal on used ones, as so many churches are getting rid of them.
All that said... I like holding a hymnal and singing harmony, but I don't see how pushing it on others would help the teaching of the church.
Look this is simple. If he wants to waste money on Hymnals...
1.) Have a meeting with the pastor (have some other leaders present) and tell him your thoughts on the hymnals and that you also think they are a waste of money.
2.) If they want to get them anyhow, let them. Put the words to the hymns on the screen anyhow. See if people use the hymnals or the screen.
3.) PLEASE don't say, "everyone stand and turn to page 223 and sing verses 1,2, and 4. Just put the name of the hymn on the screen at the very beginning.
I am predicting that if you DO wind up getting hymnals they will be used a lot at first just because they are new and people will think they are supposed to. They will soon find out that using the projection is much easier and accomodating for worship and probablly stop using the hymnals. Especially since you aren't telling them the hymn number and just flashing it across the screen.
Eventually the hymnals will stay in the pew backs. I once led music at a church who already had hymnals and we added screen after I got there. During the transition period I would say things like, if you are still using hymnals we are doing number 387 and then go on. Eventually I just stopped sayin it OR putting the page number on the screen.
We have hymnals in our pews. Our congregation is heavy in the elderly range (65-80). I would say that 85% or more of our congregation is made up from that demographic..
When I was asked to lead worship, I brought in a projector and started to project the hymns on the wall of the sanctuary. The congregation IMMEDIATELY saw the benefit because they could see the words much better and as long as we were doing hymns they knew or as long as the worship team led strongly, we seldom see people reading the actual hymnals any longer. We keep them in the pews for tradition but they do not get used any longer.
The other thing that we do is we project the scripture as well. This helps keep people focused on the verses that the pastor wishes to talk about as he or she talks about them. I still believe that Bibles in the pews are a great idea but you should make them disposable... ie. take homes, not hard back. We WANT people to have Bibles, so find a good Bible that can be placed in the pews or under a chair that you can encourage people to take with them if they do not have one of their own.
That is how we do things in our little church. I hope it sheds some more light on your situation.
God bless you,
Every way of man is right in his own eyes: but the Lord pondereth the hearts. Proverbs 21:2