Given some single-particle Hilbert space $\mathcal H$ (e.g. $L^2(\mathbb R)$), the generalized position eigenvectors $|x\rangle$ form a continuous basis of the space. Therefore, the identity operator takes the form $\mathbb I = \int dx |x\rangle\langle x|$, and any state $|\psi\rangle\in\mathcal H$ can be expanded as
$$|\psi\rangle = \mathbb I |\psi\rangle = \int dx |x\rangle\underbrace{\langle x|\psi\rangle}_{\equiv \psi(x)} = \int dx\ \psi(x) |x\rangle$$
We can construct a two-particle Hilbert space by stitching two copies of $\mathcal H$ together to form the tensor product space $\mathcal H^2 = \mathcal H \otimes \mathcal H$. Given any choice of basis $\{\hat e_i\}$ for $\mathcal H$, the set $\{\hat e_i \otimes \hat e_j\}$ forms a basis for $\mathcal H^2$.
Therefore, the $|x\rangle$'s form a basis for $\mathcal H$, but not for $\mathcal H^2$. If you want a basis for the latter, you need objects of the form $|x\rangle \otimes |y\rangle \equiv |x,y\rangle$. The identity operator on $H^2$ then takes the form
$$\mathbb I = \int dx dy |x,y\rangle\langle x,y|$$
and a generic state $|\Psi\rangle \in \mathcal H^2$ can be expanded
$$|\Psi\rangle = \mathbb I |\Psi\rangle = \int dx dy |x,y\rangle\underbrace{\langle x,y|\Psi\rangle}_{\equiv \Psi(x,y)} = \int dx dy \Psi(x,y) |x,y\rangle$$
So it's not quite that you need two projectors, but rather that you need one projector which is taken from a complete basis for the space - which takes the form of a tensor product of two single-particle states.