If your projector honestly looks better than your TV, I'd be interested to know their respective model names, what kind of screen you use, how old the projection lamp is, etc.
As much as I'm a big fan of projection, I just realized that my TV currently looks so much better than my projector. In my room I put my LCD TV below my projected image, so I can readily compare the quality difference between them. Even though I only do my viewing at night, the TV (a 3 year old Toshiba 46" LCD) obviously looks better than the projected image (from a BenQ W1000+ with about 1000 hours) in every way: sharpness, color, brightness, resolution. I don't remember if it was always this way or is it because of decreased brightness due to lamp aging. Since my white wall is my screen, it was probably always inferior, although in the past I remember perceiving the projector's quality as good when it was new.
I would love for my projector to at least come close to the TV's quality, if not exceed it.