There are tons of great sub 12k projectors out there. The main reason I lean towards the 25k projectors is that you get the good chips - the 3 chip DLP or Lcos which offer you better contrast ratios for video, typically much better black levels. Plus, with 3 chips you don't have rainbow effects that you could possibly see in a single chip DLP which is definitely a 10k projector.
The biggie though is that many of the 25k projectors put out about twice as much light and still retain a high contrast ratio. On a larger screen my worry is not screen size/viewing distance, but actual lumen output which is cut significantly as screen size increases. At 159" I would expect that the room really needs to be pitch black for watching any movies.
Is that the law? Of course not, and I have a cheapie Panasonic and absolutely love it. But, I use it in my family room. I wouldn't put it in any dedicated theater if I was planning on spending thousands on making a room a theater then I would budget the projector for about half of my A/V spending and audio for the other half... Okay, maybe a little more on audio. How about 1/3 on the projector?
Anyway, I get irritated looking at projectors that really don't offer a lot of brightness for additional cash spent, until you spend a LOT of cash it seems. You might get contrast improvements, you definitely get scaler/processing improvements, a better lens, better control and more inputs. But, really, my old Panasonic looks marginally worse than projectors costing 10 grand more, while still being almost exactly the same brightness.
In which case, you might just want to go with an inexpensive DLP 1280x720 projector and have a pretty typical theater.
If you want to try something interesting, take a look at the Sanyo PLV-WF10 which is rated, and TESTED at 4K lumens. It is loud though which means the projector must be mounted outside the room. Multiple lenses are available, none are standard, so it is not hard to do this. Isolate the projector (and noise) into a different room and run things through it like a movie theater. Very trick and a good image. But, perhaps just above what is intended to be spent.
Not much else in the 10K arena for projectors really makes me think much about buying them. There are a ton of very similar projectors from Sim2, Sharp, Marantz, Runco (Runcos constantly break), BenQ (good price), and others. The new high contrast LCDs from Sanyo, Sony, and Panasonic are great for the money, but not the same quality as the competition.
As I said, it is a big screen, and ambient light will completely destroy the view unless a higher lumen projector is used. If not, then the Panasonic will be, at the very least, a decent place to get started, but I would be it is not the final place the customer will be satisfied with. Just present him (or her) with his options and let him know the potential downfalls and then encourage them to make a decision they feel comfortable with. They may just get the Panasonic, not like it, then immediately upgrade. A pain to install and switch, but more sales. I see that happen all the time.