I'm just stating the fact that like iphones, big screen tvs, the nicer cars, etc - these are all things we want - not need.
Absolutely right! People have a hard time distinguishing wants from needs as well as privileges from rights. Outside of basic food, shelter, clothing, and medication, everything else is optional.
While sometimes you may want something really bad, to the point it feels like its a need, ultimately your life will go on if you don't have it.
However, I do believe that at some point in the near future we will have first run movies at home, once the economics of the situation get figured out.
I would be gladly willing to pay $15 to "rent" a new movie for 24 hours. It would save me at least $5-10 off of going with my wife to the movies. We could also get our own Dollar Store popcorn and save even more. And if you split it with a few friends, the savings get even bigger.
Not to mention, if we could get Subtitles and the ability to pause the movie to go the bathroom or rewind a part a few seconds to see some detail, we would be happier with the experience too.
And after seeing a few movies at the theater in the last few weeks, I think I find my 60" Plasma screen more impressive in picture quality, brightness, and detail than the projectors used at the movies (probably because 1080p looks a lot sharper on a 60 inch screen than a on 100 foot screen).
I can see how in the past when people's living room TVs were no more than 26" or 32" and most people's audio systems were basically the built in TV speakers, going out to see a movie was an "experience." But today the only reason to see movies at the theater is if you can't wait the few months it takes for them to get to Blu-ray.
Edit: Also, 3-D movies are still a better experience at the movies, but that will change in the next couple of years as 3-D TVs become mainstream.