Well, my personal preference is to have a theater-like presentation, meaning projection would be the way to go. I think the main problem will be additional cost and logistics.
I wouldn't know how to intergrate my current equipment (i.e. speakers) with a projection screen. As of right now, the center channel is located right below the tv (not flush, but maybe 6 inches closer to the listener). The sound doesn't seem to be coming out of the image.. it's a bit too easy to locate and know that the sound is coming from under the display. I guess to fix this, I would need a second center, but I can only imagine that this effect would be amplified with an even larger screen.
Does anyone have any examples of how and LCD TV is incorporated into a decent setup? (i.e. mount, furnishings, stands, etc)