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For 1080p, the rule of thumb based on visual acuity (http://carltonbale.com/2006/11/1080p-does-matter/) is that you want your seating distance to be about 1.5x your screen size, or vice versa divide distance by 1.5 to get screen size. At 10-12 feet, that puts you at 80-96". But, as previously mentioned, the range of screen sizes will also be affected by the mounting location and zoom range on your projector.
 

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1. Black levels will almost always be better on a flat panel display, but you can't afford a 96" flat panel display, so don't worry about it. Whether or not it's an issue depends a lot on how particular you are, and the screen/projector combo you use. Search for the DIY Black widow screen here.

2. High lumens, high contrast. Definitely check out Black widow for a screen. Either of your more pricey options would be best, but you should really wait a month or two for Epson's new 8500UB, same price (maybe less), better specs and technology.
 
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