Uh, yeah. On my 36 inch Sony, the 4:3 image (Rainbow Six 3, Halo, etc.) looks awesome at 36 inches. Meanwhile, the widescreen games (PGR2, Links 2004, GTA3) all look good at right around 34 inches widescreen. And if I wanted to stay with a tube, the biggest I could get would be 34 inch widescreen, which only has a 27 inch 4:3 image. If I wanted that, I'd just watch everything on the 27 inch Toshiba I've got in the bedroom.
Mathematically, there's no way you could prove that I made the wrong decision in terms of ratio watched and available screen real-estate, especially when you factor in price. Of course, you have to make the assumption that you're limited to tubes.http://www.cavecreations.com/tv2.cgi
In the meantime, If I was going to buy a projection, it'd be a 50 or 60 inch Grand Wega III, which is widescreen. At a size that large, the smaller 4:3 image becomes perceivedly less smaller that the widescreen, as it's still pretty damn big.