"Projection tv's with good quality will soon dip below the $1000 mark. As they gain popularity (which they are), people will find that not only does the theater offer nothing positive that they cannot experience at home, but it offers many negatives that can be avoided at home.
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Well, the one thing that the theater can offer that no home theater can is timeliness. I like seeing movies on opening weekend, especially highly-anticipated ones. I like the crowd. I like the larger-than-life screen, the Dolby sound with speakers I could never afford. I even like the movie theater popcorn, something I've not been able to duplicate at home.
But I'm a big movie-goer. I recognize that not everyone is. You may be right. I don't know. Movie making will change drastically, though, if the theater isn't part of the equation, and it won't change for the better, I'm afraid.
Your points are valid. We don't have TV in our home and avoid radio and subscribe to no publications. I even use Gmail to avoid all ads. We are always flabergasted at all the movies that are now on video that we never even heard of. For us, we are in a time lag so that often the first we hear of a movie is when we see it available at netflix. So they ARE brand new movies to us! 8^>