I have a projector...I bought the cheapest I could find at the time, an Epson, and am very happy with the picture quality, but unfortunately what I didn't know at the time was that it doesn't have a sealed lens so it keeps getting dust blobs. If you're in a dust-free environment I guess you might fare better but I would say if you decide to get a projector get one with a sealed lens.
Whether you'd want a projector instead of a TV I'm not so sure, but I'd certainly recommend getting one for watching films if you have the right viewing conditions eg. you need to have a room you can black out, be able to sit a certain distance from the screen etc.

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