The screen location is good and likely what I would recommend. It lends itself to being viewed throughout the space.
I would strongly encourage that you zone the lights into 4-5 zones or more with plenty of recessed lights that are well thought out and NOT an afterthought. Room lighting is, IMO, the most poorly implemented aspect of home theater that I ever see. Lighting isn't 'free', but it is something you do during construction and you can't easily do it later and changing it can be as difficult as installing it the first time. So, spending a fair bit of time thinking about where the lights will go and considering that the room SHOULD be treated as a darker space closer to the screen is a good plan.
It may also be a good plan to try to find a good way to really darken the area nearest the screen, while having a bit lighter tone further from the screen. I'm not an interior decorator, so I don't have a great idea on this. I would put blackout shades on the windows along with drapes so that you can (but don't have to) completely eliminate light in the room if you want. If you choose not to use them, then you can adjust them as appropriate. We can discuss lighting a bit more if you want, but that's why I gave you the link in the prior response as it shows how you can have plenty of light in a room, as long as you are controlling that light adequately.
What is your ceiling height?
Now, screen size should be based upon viewing distance vs. personal preference in a typical movie theater.
Where do you like to sit when you go to the movies? Center of the theater? A bit forward of center? Really close? Further back? Way back?
Center of theater, in a properly designed theater, will be 1.5x the screen width (not diagonal) away. So, at a 12' viewing distance, you want a 8' wide screen (8 x 1.5 = 12) for 'center of theater' feel. But, perhaps you want a bit more immersion, will have a second row of seating, or expect heavy usage for people further back, in which case going to a 9' wide or 10' wide screen isn't unrealistic.
In your case, at 14' the 'center of theater' requires a screen that is about 9'2" wide (110"). That's a 126" diagonal 16:9 screen and is the SMALLEST SIZE anyone should be recommending to you right off the bat. 92" is ridiculous. Even 119" is not the proper size for that room when you lay out the basics. But, we still have to consider that people may be further away and that you may be perfectly fine with having it a bit larger to accommodate those people. In which case, I would be looking at 133" to 150" as the diagonal size.
So, now we have our 133" screen (let's say) and we are deciding between front a rear projection.
The baseline you have is the 59D8000 - a very nice plasma display and one that won't be bested by a Sony or Sharp LCD and definitely not a projector. Let's be clear, movies in theaters don't look as good as your TV and they spend a great deal on the projection setup. But, the image quality is still full resolution 1920x1080 which is what your plasma has, just a lot bigger. It means the flaws are easier to spot... But only if you are close to the screen. In a dark room, front projection is spectacular, and you may want to give you location so you may be able to find someone near you who has a front projection setup you can take a look at (after dark). But, it isn't a direct view light source, so you aren't going to get the punchiness that you do out of a direct view display such as plasma or LCD. This is why front projectors need dark around the screen for best performance.
Now, I like the concept of rear projection, but there is a bit of a quality hit. This is mostly due to the fact that the beam of light must pass through a surface, then be scattered on the other side, which either decreases brightness significantly or decreases viewing angles which can causing hotspotting and uneven image uniformity.
Here is a list of rear projection screen surfaces from DaLite:
Selecting the Right Screen
You can see that while they have some positive gain rear screens, the viewing half angles tend to be about 35 degrees or less.
In comparison:
Selecting the Right Screen
You can see that a 1.1 gain, high contrast screen, still maintains a 50 degree viewing angle.
What does this mean? It means that front projection bounces light more easily back towards viewers and does so in a manner which gives a better image across a wider seating area with less chance of hotspotting and allows for a larger image to be delivered. The downside? Front projection demands less light in the room. Period. Rear projection certainly does hold up much better as long as the storage area with the projector and screen in it is 100% dark. If the rear projection area isn't dark, then it completely negates any value that would have been gained by using rear projection in the first place.
Worth saying: Good rear projection screens cost a good deal more than most good front projection screens. A screen like the Black Diamond screen (front projection) is still a pretty pricey screen, but should run less than what rear projection will cost.
I'm not telling you to do one or the other, I'm just laying things out. I actually think rear projection is very good if your intent is to have more light in the room most of the time and you want to maximize quality under those circumstances. But, you will give up the overall quality a bit (and just a bit) because of the issues noted above related to rear projection.
I would probably recommend the High Contrast Cinema Vision if you went front projection, and I would recommend the DA-100 WA if going with rear projection. Unfortunately, Black Diamond screens are still size limited and wouldn't really be appropriate in your room unless you wanted to give up some size, which is not something I would recommend.
Finally, projectors:
Projectors cost more as the feature set and quality goes up... for the most part.
Here's the rub: The best projectors are completely amazing looking in a theater.
You do not have a theater! You have a rec room. Don't play a suckers game and get caught up with the better projectors that cost a lot more because at the end of it all, you don't have a fully dark room, and the use of rear projection would compromise image quality further. Even with front projection, you would have to compromise the room a great deal to get the most out of a better projector.
I would actually recommend a 'family room' projector. These models are brighter, but don't have quite the black levels of dedicated theater projectors. But they do still have good black levels and they have outstanding brightness.
Here's a list of projectors under $2,000 which are full 3D and 1080p models:
Find Projectors By Feature
They are sorted by brightness, and frankly, I would lean towards a few specific models:
The Optoma HD131x
Optoma Projectors: Optoma HD131Xe DLP projector
It's bright, it's inexpensive, it has solid reviews, it does 3D, and isn't a terribly short throw lens which will improve image quality for both front and rear projection. Note: Rear projection does far better with longer throw lenses than shorter throw lenses. Yes, you give up more space, but you improve image quality significantly.
Optoma HD25-LV
Optoma Projectors: Optoma HD25-LV DLP projector
This one is a light cannon. Also well reviewed, but perhaps not as good the the 131x.
BenQ W1500
BenQ Projectors: BenQ W1500 DLP projector
Highly comparable to the others with a slightly different lens configuration. May work better/worse for your setup needs depending on the room itself and the final configuration which is decided upon.
I'm gonna let you rear this a dozen times and come up with more questions. Let me know if you ever move to DC and need a theater installed.