I was inspired by this thread to try something I wanted to do for a while; Hook up my PC (I know, I know, It's the PS forum. So sue me) to a projector sitting in my basement. It was fuzzy, and limited to 1280x720, but at 165 inches? Who cares?!
The projector was WAY cheep too, less than $500 used. Someone else should try this, cheaper and bigger than LCD's, but not HD and not so sharp, plus the color seems a bit faded and you need darkness. Tradeoffs, eh? Much in the TF2 style.
Fuzziness has to do with the clarity of the signal and TV. Digital signal ---> Digital LCD TV + right resolution = Crispy picture(?)
Analog signals, like yellow component and composite cables, can come out fuzzy on LCD's, especially at the wrong resolution.
I still like my 75 pound, 20" CRT because it stays sharp at any resolution and I can make fun deformations to the screen when I'm bored (Ha! Try and adjust the pincushion setting on that LCD!!)
But if somebody buys an LCD for my birthday or christmas, I wouldn't exactly throw it out the window either...