Maybe it's just me, or my field of study, but over the past year I have become fond of theaters. Where I grew up the theater was trash, but now that I live in the city with a THX theater, nothing compares. I've seen the home movie setups, and have a decent setup myself, but honestly, nothing compares with a properly tuned theater. Note: properly tuned. Most aren't, but those that are a true joy to experience.
Personally, I wouldn't like the movie to release early on DVD. Not unless they made it a crappy transfer with stereo sound. Most people I know would be fine with a stripped down version, and wouldn't visit theaters. I mean, if you payed 15 for a stipped down version you could watch at home with friends, or pay 7-9 a piece, what would you do? 2 people pool their money, buy it, and the others buy snacks. That would kill theaters so fast. Considering I make films, with a not to distant goal of theatrical releases, killing theaters would have a huge impact on my life. I directly oppose early DVD release. I say, if it's good enough that you go through the trouble of Bit Torrenting it, at least give them a few bucks from your pocket and watch it in the theater as well. Heck, I know people who have payed theater prices, and not even stayed to watch it. They just wanted to support it.