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Kirk-That is what I enjoy as well but no one else I know is willing to pay, so I like the idea which means it won't make money :) I am as far from the "average" consumer as it gets. I built the same basic thing at my place and my friends love to come over and watch/listen but not willing to pay for it, but on the flip side I don't pay to go out for a ride there ferrari or there boats....etc. One hand washes the other with my crew-I happen to be the audio dork ;)
There are certainly copyright issues here -- genearlly, the DVD's that you and I buy or use are not licensed for anything else other than home (not for profit) use. Other, special cases, may exist (such as Blockbuster's license to rent) but this is cetainly a legal can of worms.
If the idea ever took off, I'm sure that the theatre chains that pay for distribution of movies would indeed cry foul, even in the case of re-runs, B movies, or old movies. Additonally, I think the business case for this is very weak -- the great majority of the public think that DTS in a theatre is better than any home systems, and market perception (right or wrong) is reality.
In Toronto, several theatres have 'VIP' theatres which approximate a good home theatre (small room, better speakers, comfy lounge seats and in-your-seat delivery of confections). I like the idea, and when attending those few theatres that have this option, I have payed the extra $5 for the 'VIP' treatment. -- Lorne