I would be keen for a large LCD panel for upstairs.
My thought would be mounting it in the corner opposite the soldering desk, facing towards the kitchen.
I think that would work but perhaps when i look more closely at the space next time i am there it may not work.
Then if things all work out with that one perhaps get a 2nd unit downstairs mounted to the wall or hung from the ceiling. That is of course if it is completely secure down there with the recent security upgrades.
If it had to end up being a projector, then yes defiantly a wuxga (1920x1200) or 1080p with short throw would be the go.
Also an ultra short throw one (>1m from screen) would be nice but i suspect would be a bit too pricey.