Buy LED, LCD or Plasma

As best as I can tell from your "systems" photo, a 58" will be way too small for your viewing distance. I refer you again to: http://myhometheater.homestead.com/viewingdistancecalculator.html

Unsound, I understand that recommendation but based on that calculator my current 55" TV just a few feet away from seating position should be between 70" and 77".

Mounting above the fireplace, the recommended screen size is between 118" and 125".

According to Google, there are only a few flat screens that large and they start about $100,000.00. I know a front projector can go that large but won't work due to the large skylights I already mentioned

Do you know of something I'm missing?

I have a Panasonic TC-P50G10 hanging on my wall. The TV is great but if I could have spent $3995, I would have moved up to the Panasonic Z-1. It comes in only one size presently (54 inch) but it is lightweight and only 1 inch thick.
The reason I recommend this one to you is the wireless setup. Fishing a half dozen wires through your wall can be a major pain. With the Z-1, all you need on the wall is an AC outlet (use a Porter Port). The rest of your stuff plugs into a box on your equipment rack that communicates with the monitor wirelessly.

By the way, this set is basically a wireless version of the V-10.

Questions for plasma-owners: 1) I've read that Gov. Ah-nold was contemplating banning the sale of Plasmas in California due to their power consumption, thoughts? 2) I've also read Plasmas don't do well long-term, any long-time Plasma owners experiencing problems?

Albert, no, but with those figures in mind, I'm thinking a 65" plasma will be a much better compromise than a 58".