In my opinion, DVD and home theatre will kill cinema in much the same way that TV didn't. That is, while it's true that TV did have a huge impact on cinema (it pretty much killed off the picture palace), cinema still offered something that TV couldn't provide - large screen, large sound and the sense of "event' that you get when you go to the pictures. It's true home theatre has narrowed the gap but it hasn't closed it yet. The sheer size of a cinema auditorium results in a quality of picture and sound which is difficult to replicate in a small room in your house. And there's still the social aspect of cinema which home theatre will never replicate.
A suitable likewise example is your local pub. Why do we continue to go to the pub when we could do exactly the same thing at home and for much less?
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