Which will win? I don't know, but I will likely get a PS3, which puts me in the Blu-Ray camp.
Generally, further back is better for a projector, but I find that this may not be true with lesser expensive projectors which close the aperature inside the projector down as you move further away. This means that the projected image gets dimmer as you move some (not all) projectors away from the screen.
I don't think the Yamaha has this issue, so further back is better. Generally about 75% back from the available zoom range. So, if you can put it between 10 and 14 feet from your screen, I would shoot for about 13 feet.