Broadcast TV and Netflix have devalued video entertainment at home. A lot of people feel like 10 bucks a viewer is a rip off when netflix is 10 bucks a month.
So why not just offer it anyway, even if most people won't buy? Because movie theaters are the best DRM money can buy. Good CAM's and TeleSyncs are terrible compared to DVD or BlueRay.
As for the snacks, they charge double or triple the price of everywhere else on the planet.
The only reason I go to a theater is out of nostalgia. For a while, I thought that 3d would give me a reason to go the the cinema, but I've yet to experience 3d in a satisfying way.
I still like going to theaters occasionally, though. For all of the flaws -- including the snack prices, definitely -- sitting closer to a 60" screen at home is not going to truly replicate the effect of sitting twenty feet away from a 720" one.
My beef is with the quality of the snacks, not the prices themselves.
The cinema experience: get dressed then travel to movie theatre, line up to get expensive ($8-$10 per person) tickets, optional purchase of exorbitantly-priced junk food, try to find good seats (not too close to screen or too near aisle), put up with 20-30 minutes of ads, deal with unwanted noise/light from others, then afterwards file out of theatre and go home.
Streaming experience: Pay $5 for everyone, eat/drink whatever you like, pause whenever you like, no risk of distractions from others (choose friends accordingly), comfy and clean seats.
Even with my relatively modest setup (50" 1080p television and 2.1 sound), I'd go with the latter option almost every time.
Also my snacks are way better, you don't get to munch on a curry and wash it down with a nice Chilean Malbec in the multiplex :)