I am investigating this at the moment because, like you, I have number of recessed lights in the hall, living room and kitchen of a bungalow.
The issues I have had so far are
1. CFL bulbs - take a second to come on, and a minute to reach full brightness, so no good in the hall as we only turn on the lignts for a few seconds to walk down to the rooms. Good colour light (2700k) so a good replacement when you have a wife who wants the light to "look right". If you are replacing 50W halogen bulbs then they will be longer than original, so you will have to ensure that the fixtures can be adjusted. I have replaced some of the kitchen spots with 7W cfls (equivalent to 35W halogen.) Fine for general light, but not bright enough over the worksurfaces, so I have retained the halogen 50w there.
Source is
www.yourwelcome.co.uk They have a large selection of cfl and led bulbs and are very helpful. Also have a sample pack of led bulbs.
2. LED bulbs. Good for the hall as they come on instantly, and also are the same length as the halogen. Of all the ones wev'e tried, only one came close to having a "nice" light colour. All the rest were too blue or white (3000k light). The nice ones were €16 each, which is pretty pricey. I've tried ones from yourwelcome.co.uk, Dwyers electrical (Cork), B&Q, and Galaxy Lighting (Cork). The ones in Galaxy Lighting were the only ones I'd consider.
3. Living room. Unfortunately all these are on dimmers, so LEDs are out. You can get dimmable CFLs (Megaman), but I haven't looked at these yet. That's on my "todo" list.
4. Front Hall. I have four spots on a switch just inside the front door. What i have done there is retained the halogen just inside the door, and replaced the other three with CFLs. So when the light is switched on, you get instant light as you step in the door, and if you leave the lights on for a while, it is still efficient.
Hope this helps.
So to summarise
LED - expensive, hard to get nice light colour, instant on, max replacement for 35w halogen, and even then, only for small areas. Not dimmable
CFL - better light colour, takes a while for light to come on/full brightness. Same length for 35w replacement, longer for 50w. Can get dimmable models.
This will be a long journey to get it right. The only way is to keep buying and swapping out bulbs until you get it right.
Hope this helps.