Home theater possibilities are also so good right now which also probably will hurt theaters eventually. Maybe not yet because it's not common enough but it might one day be.
Hell my projector and surround system looks and sounds at LEAST as good as the local theatets, i would actually say better in fact. And Neither the projector or the sound system were very expensive.
Granted the screen size is smaller so the projector doesn't have to do as much, but with the perspective of the room being smaller and being closer to the screen it "feels" the same.
Still though, there was always something cool about going to a cinema. Shame to see it dying out. Next time I have a movie party I might have trailers and such playing in the background before we start the movie just for fun.