Don't you think DVDs and bigger, better TVs have more to do with it? Not to mention the sluggish economy.
I think it's a combination of what both you and Hank said. I've been disgusted with movie theaters for quite some time, but back in the day if it was a really good movie, like Lord of the Rings, I still went to see that on the big screen versus on a DVD viewed on my CRT screen. Nowadays, now matter how excited I am about a movie, I'm quite happy to wait till it hits DVD or Amazon, and I watch it in the best movie theater around - my living room with the barcolounger, the 52" LCD, and the only other audience members being those that I invited (and who know to not talk at the theater).