Sure, just ask Kerpal to post a pic of his gaming room.
You can't use them well in a room with any kind of natural light but if you have a theater room, you can have an affordable 100+ inch HD "TV".
Bulbs will add up after awhile, a projector should be more for specialty use than every day TV watching.
Although they have LED projectors now for the same prices as traditional ones from a few years ago - and the LED versions have something like 100,000 hour lamp life with hardly any degradation toward the end.
For those willing to spend the money there's screens that actually work outside of a dark environment - but last time I looked at those they were like a thousand bucks, this was about 2 years ago.
I agree that either way a projector is best for "special occasions" rather than everyday use, unless you actually have a dedicated room...