If the budget is a factor than I would consider using 4" remodel cans. These do not get attached to a joist they have brackets that hang them on the drywall. They are much easier to install. You can put in just about any style bulb in them.

Consider this ... yes LEDs are better than they were. But, how often are you really having these lights on? LED lights are excellent in office spaces, stores, etc ... places where the lights are on for 12+ hours a day, 5-7 days a week. However, at home, in your living room, you're talking what, a couple of hours a day? The lights probably won't begin to pay for themselves for 10 years. As much as I like new technology, I'd avoid LEDs. They're not worth the cost. I just redid my entire living room ceiling and added some 5" recessed cans that hold an incandescent BR30. They look amazing. 4" cans would require more in quantity, 5" are big enough to fill space well (I'd recommend every 4'-0" on center at a standard 8 foor ceiling height to avoid wall shadows). 6" cans would be too much in smaller spaces.

I use lights much of the time - even in the daytime on a grey day. I have replaced all my incandescent lights (which are now banned in Europe) for LEDs. As long as you choose a warm colour (like an old incandescent light) instead of a cool colour (too white or blue), I think you are fine. You are also doing the environment a favour and using far less electricity.