If you have the room for it then there's no doubt that a dedicated Home Cinema is the way to go.
This fantastic 7.1 installation, located in the basement of a new-build house ; features a 2.5m wide Acoustically Transparent' projection screen.

The Left, Center, Right & Sub speakers are Artcoustic's awesome 'Spitfire' range of loudspeakers, mounted behind the screen, resulting in a sound that literally jumps out of the screen and is exactly how it's done in commercial cinemas.

The projector used here is Panasonics PTAE 4000E which despite it's modest price tag, is an extremely capable unit.

An essential feature of a Home Cinema like this is remote controlled dimmable lighting.
A Lutron 4 channel dimmer switch handles this and a Philips Pronto TSU9600 controls every aspect of the cinema operation.