I don't think multiple choice tests and project-based assessment are in conflict. They are both useful tools for evaluation. Multiple choice tests can allow a student to evaluate himself to make sure he has the base level of knowledge required (facts and application) in order to develop mastery. I do think it's useless as a grading metric, even discounting cheating issues. Project-based ability assessment is useful both for gaining mastery (with timely expert feedback) and for evaluating a students' mastery. I think project-based ability assessments for grading purposes ought to be coupled with a conversation about the project so the student can explain/defend his or her choices. As a side effect, it will help prevent cheating by having someone else write your project.
In your particular case, I'm glad you had a good professor that allowed you to spend otherwise wasted time learning. However, I can't help but feel you should never have been forced to take (and presumably pay for) that class.
> However, I can't help but feel you should never have been forced to take (and presumably pay for) that class
I felt the same way, so I dropped out of school and started looking for someone who would hire me without a degree. I regret not having a university experience, but as far as career goes, I got a two year head start and no debt.
In your particular case, I'm glad you had a good professor that allowed you to spend otherwise wasted time learning. However, I can't help but feel you should never have been forced to take (and presumably pay for) that class.