nothing can beat a projector..the sheer screen size is pure win for Home theater usage.
I have been using the one at my folks place for TV as well (tata sky) as it seems the TV conked out recently.
The projector is phenomenal fun to use for TV viewing as well. Of course, with TV viewing, using a projector can become a very expensive proposition due to bulb life being left to chance. However, if you plan to use it for movies exclusively, then i would whole heartedly suggest a projector.
I get a 101 inch screen from a throw distance of 14 ft..you have to experience to appreciate it. Small screen with big sound is such injustice to the sound system you would have invested in a HT.