I have a ~90" projector screen with a bit over 3 meters of viewing distance and I could definitely use larger resolution than 1080p. Also, many people have 120"+ screens (but my living room conditions don't currently allow for that).

I don't really know why everyone assumes that a large screen must be a TV. Projectors are really inexpensive compared to large televisions and allow for a LOT larger image sizes. Brightness and lamp life problems are also largely a thing of the past. I have a three and half year old ~900€ full HD projector (Benq W1000+) and would not even consider going back to a (relatively) tiny and expensive TV.