It's hardly unrealistic. If theaters are wondering why they have so much trouble filling seats, they can look to this mode of thinking. Theaters (save for maybe some chains around me like MJR and Emagine) don't seem to understand how markets work. They've been raising the prices continuously and wondering why their sales have dropped, without giving much justification for those raised costs (the theaters I mentioned either typically sell cheaper than others in the case of MJR, or they have very high-end experiences in the case of Emagine).
AMC, since they've been the most vocal opponent to moviepass, are terribly guilty of this. The only reason I use their theaters is either because it's close to me (I live less than a mile away from one), or because my friends want to go to one for whatever reason. They're always terribly maintained, it looks like their staff doesn't care to clean, I can hear noise, including intelligible dialog, from other movies while watching mine, and their concession price gouging is some of the worst.
If they want to start getting people back in theaters, they need to either deliver a better experience or severely lower their prices, though probably both.