I have seen photos of beautiful home theaters. You even have some on this site. Do I need to dedicate a room and spend that kind of money to have a home theater?
You definitely do not, although if you have the space and money, they are great. But most of us don't. So a large screen, depending on how far back you sit, maybe 55 - 65 inches diagonal, a receiver that supports at least 5.1, and a set of home theater speakers including a subwoofer can make for a terrific home experience. Give it a try. You won't regret it.