You all are over-thinking this again. Unless a movie just came out, I don't go to the theatre anymore. Movies come and go so fast now it just kills the desire to do so, and everyone I know feels the same. Worst case scenerio: I'd pay $16-18 bucks for a pair of movie tickets (plus gas), and two weeks later the DVD is on sale at BestBuy for $14.99. So IMO, yes, they're right. Unless you are just the "Movie Go'er" type, more than likely your interests have been dwindled by this as well.
I do however feel that there is a hidden element that no one is considering: Home Theatre Systems. Years ago it was a thrill to go to the theatre, if not just for movies like the Matrix or a good WW2 flick. Nowadays, stores give away free satelite speakers and a subwoofer with a bottle of Dasani, so damn near everyone has one now. Instead of going to the movies, all the true audifiles (like my brother) can't wait to get it on DVD so I can "come over and hear movie_x on surround!"