Price per inch, there is no comparison to a front projector.
You will have to turn down the lights some, but we did this even with a CRT TV. Your type of screen material can heavily effect how much light you can have on in the room. I have a High Gain, 2.5 gain screen. But my projector is technically a fairly low lumens ( light output ) PJ. Although it actually puts out a lot more light then the numbers suggest. Lumen ratings are similar to watts on an amp. They can be over rated in real world use.
for example, my projector is 750 lumens. which at first is low.
The other projector I was looking at was a AE700 Panny. It's a ~1100 on paper.
Now, my projector in Econo mode runs at 600. But it's calibrated output is actually 350-400.
That Panny, even though its rated 1100, it's real world rating is below 300. Now which one is brighter?
Bottom line, you have to read up on a pj before believing anything.
You also have to see what technology is better for your eyes.
There is DLP, and LCD
Also, there are home theater PJ's, and business PJ's and the difference is HUGE. I have access to dozens of business pj's at work as our dept takes care of them. So I've seen quite a few, high lumen pj's. But, where a home theater one has the advantage is in vibrant colors, and it's a no contest imho.
DLP has deeper blacks, better colors and contrast, but some people can see what is called a rainbow effect.
LCD has higher resolution for a decent price, not so good colors, and has a screen door effect.
You have to see which one YOU prefer. it's the only way
www.avsforum.com has a good section for under 3500.00 pj's.
www.projectorcentral.com is also a good start.
www.audioholics.com another great place.
How far a projector has to be is dependant on it's lens.
My 4805 has to be 17' back from screen to get a 110" screen without using the zoom. Using the zoom, I can cut that down to ~13-14. the manufactures like infocus.com have distance calulators online to determine where you should place it.Generally, you don't want to use the zoom too much.
something like the Panny AE700 again has a much better lens and you can place them much closer to a screen.