Hello,
Sorry, just realised in earlier post should have said I had a 36" CRT, it wasn't 32.
It really is each to their own but I've got an LCD projector that was about £1500 all in: screen, mounting, cables and projector itself. Plus a very well regarded 26" TV for £250. I don't like the rainbow effect but I demod £1000 projectors that were pretty much as good.
Compared to a big TV, there's just no comparison with a projector in terms of cinematic effect. At night the picture is fantastic, with vivid colours. In daylight not quite as good, but good none the less. I certainly don't feel it's any worse than the LCD I have, or the big plasmas of my mates. Plus no issues such as limited viewing angle.
At 3m the projector picture is great even for standard definition TV, except for the more low quality channels like 5 US or whtever, where some pixelisation can be seen.
I was worried after 36" but don't feel short-changed by the 26" for TV either, and feel most of it is more appropriate at that size. And if there's something really good on, I can stick it through the projector.
As above each to their own; I'm just highlighting my own experience as I think a lot of people think it's complicated, or they'll get rubbish pictures without spending a fortune or having a completely dark room. I think more people should seriously consider it.
Certainly, and this is obviously a personal view, I wouldn't go back to a single big TV, as all round I feel the viewing is much better and I like the extra space. Plus it's a step toward a separate cinema room when we move house.