The death of cinema generally

Over at the Telegraph, Ian Douglas has some interesting ideas about your local cinema. It follows in the wake of comments by Dave Winer, prompted by his trip to see the Simpsons movie.
Home technology is rapidly catching up with cinemas, in terms of quality and pricing. You can buy a setup relatively cheaply, which is at least as good as the local multiplex, and has added conveniences. (I speak as someone who just bought a famous-name 42″ LCD TV for under £700. There are some benefits to being flooded, I guess.)
The exact same thing happened to amusement arcades: when the PlayStation brought true arcade-quality gaming to the living room, they failed to deliver something better. And there are few more depressing places than a seaside amusement arcade these days.