It depends on one's perspective. On a 50" TV, 95% will look fine. On a 104" projector screen, well 95% is a much different story. Bigger isn't always better. 480 (i or p) just doesn't have enough information to fill a screen of that size. Compress it and then you have even less to work with.

I would encourage you to try different settings and see how they work for you. Only you can determine what is acceptable. If your using a television backups should be fine. If you considering a projector and screen combo, I would suggest staying with the originals.