Are Theaters Passé?

Saw a story recently about movie studios wanting to compress the time between releasing a movie to theaters and releasing it on DVD, saying that theaters are no longer relevant, and that the lower box office receipts are because Americans no longer want to go to theaters.

The theaters are responding that box office receipts are second only to last year, and that the drop is because the offerings from the studios are subpar this year and that if DVDs are released within a few weeks of theatric release, that will adversely affect their ability to attract crowds.

Thoughts? When's the last time you went to a theater? Do you rent/buy new DVDs as soon as they're out?

If a movie you wanted to see were going to be out on DVD in 4-6 weeks, would you be less likely to go see it in a theater?