If you are looking
for a large screen movie or TV viewing experience in your home, a projector definitely gives you the best screen size to dollar ratio. A 65 inch LCD runs for approximately $7000 while you can pick up a 1080p projector and screen for about half that price. Those numbers alone give the projector a considerable advantage for our home theater setup.
If that is still too much money, 720p projectors can still give you really good image for around $1000 or less. This is probably the route that we will go until 1080p projectors drop dramatically in price. Do be aware that projector setups require a reasonably dark room to provide the best image, not as much of a consideration for LCD TV's. What else should you consider?
Brightness: The higher the better. Rooms with high ambient light would benefit from 2000 lumens while a dark, dedicated home theater will probably be fine with 1000 lumens.
Lamp life: Replacing these will run you between $200-$400. Lamps typically last between 2000-4000 hours. Assuming you use the projector 8 hours a week you are looking at just under 5 years.
Set up constraints: Ceiling or table top and how far from the screen. Not all projectors can be ceiling mounted and each projector has a distance requirement which may not fit with your layout.
Noise level: Having a projector means having a spinning fan to cool the projector while watching a movie. Look for less than 30dB which is equivalent to someone whispering.