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I've just tested out something I've long wanted to do:
I purchased a Low-Def (about 200X600) video projector system for $50. I projected an image of about 10ftX7ft, I placed a TV in front center of the projection, hooked a video player to both the TV and the projector system and seated myself in front of the TV.
My eyes focused on the TV image while my peripheral vision caught the larger projected image.
The brightness, focus, contrast, color, distortion or other qualities of the projected image weren't terribly important. The movement of the projected image being in sync with the TV image was key.
If projection systems are a problem, large flat screen TVs could be constructed without too much worry about brightness, color, definition or picture quality in general and a smaller, quality flat screen could be placed in the center.
Perhaps "fish-eye" type lenses could be created for theaters. they could project out part of the periphery of the image (especially top and sides) onto screen extendtions without too much concern for brightness or distortion.
Alternatively, a second projector could be used to project the peripheral image that has the center lense masked out for the other projected image. :)
"It is quite simple to turn an aquarium into fish stew. You boil it. Reversing the process is a bit more difficult." - A Russian Official