I often watch NHL and CFL on the TV in the living room just because I'm doing other stuff while keeping half an eye on the game. However if I have 2-3 hours to kill and that's all I'm doing is watching the game, I'll fire up the projector. With the seats reclined my eyeballs are probably 13' away mind you.
News/sitcoms I'll watch on the TV though. Seems easier on the eyes. There's also a reason I want to upgrade to a motorized screen with a 65" Panny behind it though