Small AV room setups now better than big rooms???

With the current state of technologies the way they are now for the consumer public, I am making a strong case for a small AV/Home Theater room setup over a larger room, FOR THE MAXIMUM AUDIO/VISUAL EXPERIENCE!!! Let me explain...
With 1080p anamorphic projection units (and displays, even), and state of the art video processing - combined with HD quality Digital movie sound content, and ultra high quality digital DSP EQ processing circuits (like Audyssey) -A potential for unsurpassed audio/visual playback is now within easy reach of a large percentage of the consumer market. With what technology is now offering to us, the equipment that's being marketed to us consumers now, IMO, ACTUALLY FAVORS A SMALL ROOM SETUP/ENVIRONMENT OVER A LARGE ROOM SYSTEM SETUP!
More explaining: Consumer PJ's offer relatively lowish light output, compared to larger projection systems, offered on the commercial end. Most reviewers will tell you that a maximum sized projection screen setup of between 95 and 120" maxium is recommended for even these 1080p projection systems, EN LARGE PART due to the light output and picture quality potential of the projection system's limits! Basically, they're all saying that PJ's offer only so much available lumen output, to properly display a solid, properly balanced and saturated image, for a given screen size and gain. Beyond that, the image quality will dimminish. Anyone trying to stretch even their 1080p - anamorphic enhanced - projection system to larger than 140" of screen size, are looking at a somewhat dimmer, less saturated immage, potentially (at least from what reviewer and manufacturers recommendations are)
Now, on the Audio side of things, the AV receiver is king! Lowish powered, limited current delivery AV receivers (compared to much stronger separates based systems) also offer better performance for smaller satalite and sub bassed systems (in my professional experience with this stuff over the last 20 years), and are much more efficient with smaller systems, in general. ALSO, the newer DSP room correction technology has made tremendous advancemenets in what's capable from an audio system, in typical acoustically nightmarish listening room environements.(namely, SMALLER ROOMS). Basically, this newer technology can actually fix most all of the acoustic challenges previously not fixable with affordable/practical means (to a high degree, anyway), using something like Audyssey Lab's tremendously effective room correction circuit, included on more and more AV pre's and receivers on the market today. In short, this technology is able to make even the smallest of rooms, sound like much larger, acoustically preferable spaces/venues.
All this said, take a very good consumer 1080p anamorphic capable projection system - combined with a perspectively large (95-120" screen, in even a smaller bedroom will offer tremendous scale and resolution potential on Blue Ray and HD!) 1.3 gain white screen, coupled it with a state of the art AV receiver or processor - and some highly capable compact monitors and sub system, all setup in a typical small dedicated room in the average consumers home (even cramped 9'x 11' tiny rooms), and it's gunna be EXTREMELLY difficult to beat the possible experience with the right consumer equipment selection!!!
Anyone care to comment or rebut?
So what I'm stating is that it's my belief that the standard consumer PJ systm's and AV receiver bassed passive speaker systems readilly available on the consumer market today, fair potentially better setup in relatively smaller domestic spaces, than in large living spaces and dedicated theater rooms!
The only down side and challenges should be, of course, space for all the loved ones and friends, and proper HVAC air circulation! And, If it's "just you", or you and your bud or partner are the only ones watching/listening, I think a smaller dedicated room system will not be beatable with the standard gear selection we have to chose from right now, really.
Whada ya think of the perspective? I've never heard anyone bring these points up on a post before. Dunno, could just be me
Well if you mean that it is relatively easy and cheap to make great sound at low volume levels then I agree absolutely...but small rooms don't sound right to my ears.
There are systems optimized for all situations large and small. You have a good point that a small room can afford immense A/V pleasure and to some degree better than a large room. Personally, I have always found the home theater experience flawed in a large room mainly because the sound field is so immense, yet the picture screen is small by comparison - they don't seem to "fit" hand-in-hand. A smaller room seems more intimate and the sound field not as huge (compared to the screen). No challenge is insurmountable if you throw enough money at it though.
I think this would be a great point for the mass HT rags to explore as the mostly show "reference" rooms that are often large in scale and would tend to make the average consumer feel its not something they can afford money or space-wise.
I think a bit larger room is ideal IMO, I really like the fact I can get 5 friends in my room with plenty of elbow room for a movie........I am ina 14X24 space but if I didnt want to focus on audio 5ft or so could be taken off long dimension as my speakers likely wouldnt be way out in the all in all 14x17 to 18ft would be great and thats exactly what Frm is talking about as many bedrooms would be that size.
My fathers space is 14X30 and I think its too long and doesnt sound "right" to me for movies as the rears dont blend as seamlessly as I would like no matter what I do with his Legacy Processor, it sounds great but something doesnt gel as much as I would like..
Again, to re-affirm, I think I'm mostly considering these specific points, related to performance:

1. Projectors have limited light output for perspectively large screens needed for larger spaces, and further seating distances (thus, in a large 3000 cu foot room, the perspective screen size will be proximally smaller for your field of view, due to size limit constraints that the projector/screen can handle with "quality")

2. Traditional passive consumer speaker systems, mated with the plethora of AV receivers out there (being marketed heavily to the consumers - who are either edjucated or not)
offer stronger efficiency, and potentially better dynamic performance in a smaller space - as opposed to having to drive more demanding speaker setups in larger spaces. Let's face it, a receiver does a MUCH better job of controlling smaller speakers "set to small", than driving full range passive 89db speakers in a large room (I think most reviewers would agree here)

3. The new DSP room correction, offered by companies such as Audyssey, can perform near miracles to the acoustics and system performance parameters, and, to a great degree offer benefits that outweigh what even more advanced high end systems without such correction can offer, all things equal!

Again, when I look at all the pieces to the puzzle, if I'm thinking about buying a $1200 AV receiver with DSP room correction, HD master digital sound, lowish power output capabilities compared to separates based systems (years of audiophile experience proves that to me) - and using a low lumen consumer projector (unlike the light several hundred thousand dollar, quality light cannons used in large commercial theaters) on a 100" screen - ALL the pertinent variables related to my understanding of performance from a system POINTS TO A SMALL ROOM SETUP!!! That's all I'm trying to say.
It's a perspective, anyway