Just replaced my ageing 32in Sony trinitron CRT behemoth with a tiny little ACER k137 LED projector. The Projector was about £300 and I already had some surround sound speakers and so now we have a huge 120in screen for very little money. It is HD and 3D compatible and leaves a hell of a lot more space where the old Sony used to be. The projector is mounted on the ceiling and so does not get in the way.
Here in Italy if you have a TV you pay a TV licence no matter if you just watch DVDs (Have you ever experienced Italian broadcast tv? well we don't watch it put it that way), so now we even save €150 a year on that so the thing should pay for itself in a few years.
Also as it is so portable and as we get really good weather most of the summer, one thing I am really looking forward to is summer nights when I can take the projector outside and have outdoor movie nights. Don't think i'll be going back to a traditional TV set any time soon.