I agree with Zarak that they are not dead. I think there is a lot to be said for seeing a film in a good sized theater with a crowd. I enjoy seeing movies in the theater with the San Francisco audience. It can add a good bit to the experience (as well as detract... babies and cops shooting people dead). I saw Episode one on opening night with a packed crowd and it was way more fun to watch because of the crowd and the excitement than it is at home on my home theater setup. All the geeks (myself included) really added to the atmosphere.
I'm not sure what you mean by movie house. Do you mean the large one screen theaters or the multiplex?


"What can be asserted without evidence can also be dismissed without evidence." C Hitchens