Rob - I think you made a good choice. The 8350 will likely be my most recommended projector for the entry level folks this year, but the 8700 or a JVC is where you go if you have a good space. Dark walls, dark floor, dark ceiling - those are the environments which can take advantage of the better projectors better than anything else.
To often people buy better projectors for lousy rooms and then wonder why they don't perform so well.
Kind of like putting B&W Nautilus speakers into a bathroom... what's the point!?!?
You want that balance of quality vs. the environment it is in.