I would stick with the 8350. Here's why:
-Huge placement flexibility
-Can drop to an appropriate level of ~500 lumens for movie viewing, as opposed to the ~1200 in cinema mode for the w1070
-Can output around 1400 lumens when needed at mid zoom.
-3LCD uses less energy than DLP
-Zero rainbow effect (Everyone can see it if you try, it's just a matter of how much it bothers you. Why do you think all high end projectors such as JVC, Sony, and modern movie theaters use 3 chip projectors? Rainbow effect ruins immersion in films)
-Better blacks (even if not by much)
-no light leakage
-It's probably the best selling home theater projector of all time, no joke. There is a reason for that.
-Great customer service from Epson.
-As of today, the 8350 is selling for $1,299 on amazon. The same price it was when it was released 3 years ago because it can still command that price from consumers. Do you think the 1070 will still sell for $999 in 3 years? Not. a. chance.
Here are Benq w1070 pros and 8350 cons I will rebut.
-W1070 is sharper. ---Yes, but the 8350 is still 1080p and looks awesome. The w1070 is sharper than JVC's too, but you'd have to be crazy to pick the w1070 if you had a choice and money was no object.
-W1070 has better color. ----Both Projector Central and Projector reviews say the out of box and calibrated color of the 8350 are fantastic. Good enough for me.
-8350 lamp failures and misconvergence ----If you were to only read the forums, you would think 50% of all 8350's have these problems. In reality, the 8350 has more reviews on amazon than any other projector and they are overwhelmingly awesome. Forums are excellent, but a lot of times people go to them to troubleshoot problems or notify others of problems. Plus, epson will replace your lamp if it fails prematurely for up to two years after your purchase.
Hope this helps. For disclosure, I own an 8350, but I tried the Optoma HD25 in the last week (which I would would pick over the 1070 anyway) and returned it. These are my opinions, do with them what you wish.