It seems people are watching movies on smaller and smaller screens these days. Portability is more important than video and sound quality. Although TVs are getting thinner and thinner. But I don't think many are being connected to Home Theater receivers and full surround audio. Is Home Theater going away?
I don't think so. But we will see the impact of Atmos home systems. You will only go down that path if you are committed to home theater sound. So watch Atmos and that will tell us a lot. There is definitely some truth to the points you have made. Portability solves many problems.