Oh yes. Thing is, people probably don't know how to mess with the projector's crazy settings or they bought a crappy projector. A high quality projector blows any type of TV out of the water. My friend is a complete projector nerd, they're like his favorite thing in the world and has spent so much time researching and ing around with them over the years. The image quality is unbelievable, honestly more enjoyable watching movies on his current projector than if I could at a theater with no people in it being loud.
It's one of those things that you need to know about though, which probably makes a plasma a better option for most people. I have no idea what it costs to have some projector dude with your and make it awesome.