Theaters still have plenty of life in the big cities, but the collapse of the periphery is already well underway. The ones left in my area are barely hanging on.
Really, the "theater as experience" is in sharp decline as the remaining theaters try desperately to save money by cutting expenses even as they are expected to invest in expensive 3D projectors and other gimmicks. The studios need the theaters less and less these days, allowing them to bargain harder and reduce theater revenue even more.
Fewer people are going. When's the last time you saw a full theater that wasn't a midnight showing? Even half full? I've watched movies by myself at times. That's not good.
I won't say they're doomed, but these are very dark times for the theater industry.