My first big problem with projections is the degree of specificity that some people take it to. Personally, I don't see anything wrong with saying "Player X will get about 80 catches for 1350 or so yards and 7 or 8 TDs", but I think its silly when people project 82 catches for 1353 yards. Why not 1354 yards?
Rounding everything to the nearest five or ten yards would be an extra step that I don't see as being worthwhile. Rounding in that manner may not make a set of projections less accurate to any noticeable extent, but neither would it make a set of projections
more accurate, so what's the point?I disagree that people will infer greater certainty or greater accuracy from greater precision when it comes to projections. I think everyone understands that a projection of 1353 yards is not likely to end up being exactly correct.
My projections for rushing yards are based on projected yards per rush times projected number of rushes, and the answer isn't always a nice round number. Rounding to the nearest whole yard improves readability, but I don't think rounding any further than that has any big advantages.
My second big problem with coming up with a set of projections is it suggests that there is really only a single possible outcome for the season. It's all well and good to say "Tomlinson will get 1500 yards and 20 TDs", but what if I don't feel like that? Maybe I think Tomlinson could get as few as 1200/12 if he's hungover from last season, or as much as 1800/26 if he keeps it rolling strong? What if I think that Tomlinson is a larger injury risk than the rest of the RBs due to his extreme workload over the past several seasons? With a single set of projections, there is no really good way to express that uncertainty. I could decide how likely each outcome is and then compile a weighted average of all of the projections, but that doesn't really encapsulate everything I'm looking to cover. In the early rounds, I'd much rather take an RB with a lower risk factor, whereas in the later rounds I'd rather gamble based on upside, risks be damned.
Coming up with a set of projections does not suggest that only a single outcome is possible.It is true that projections don't encapsulate everything you're looking for. Information is lost on the way from "50% chance of 1800 yards plus 50% chance of 1200 yards" to "1500 yards." Moreover, that information can be important for precisely the reasons you mention.
But that's not a legitimate argument against doing projections. Just like the fact that a list of bye weeks doesn't encapsulate everything you'll need to dominate your draft isn't a good argument against compiling a list of bye weeks. The key is to use
all the tools and information available to you.
So don't rely on projections or VBD exclusively. You
should take the safer guys in the early rounds and then gamble more in the later rounds; and you won't know which guys are which if all you look at is a set of projections. So make sure that's not all you look at.
My general workaround is to compile several different sets of projections- a floor, a ceiling, and a "most likely outcome" projection, all of which ignore injury risk, and then add notes in the notes section regarding specific red flags or injury concerns that a player might have (including how many carries an RB had during the last year, last three years, and entire career). That way I can switch back and forth between the various projections as the situation demands. I also always keep in a little bit of leeway to go "off book" if I really feel that I have to get someone for reasons I can't quite articulate.
Your way falsely suggests that there are only three possible outcomes.

Seriously, your approach is great, and IMO identifies the biggest advantage to doing projections. When you go through each player on each team and come up with a projection for him, you are forced to think about best-case scenarios, worst-case scenarios, how the offense may be different this year from last year, etc, etc. You get a
feel for the player's prospects for the season -- one that is informed by all the factors you are systematically taking into account. When you do projections, you don't just end up with a final number like 1353 yards that you can stick into a VBD App. You end up with a final number
plus all the information you've gathered and internalized while doing that projection.
As others have mentioned, doing projections isn't the
only way to develop a well informed feel for each player's prospects for the season. But it is one way, and IMO is a pretty good one.