Home theater wins hands down, I go to the movie thinking "I paid for this?"
2 points:
First, I don't think this was mentioned, but what about when the sound is too loud? I know sometimes the woofers are so awesome (remember the bomb in the asteroid field on Star Wars Episode 2?), but come on the sound can be too loud or too soft or some dope will crank the surround and the dialog suffers.
I don't cotton to surround sound at my setup just yet, I can't afford one that is any good so the money is better with a 2.1 surround setup until I do, so I have a set of Harmon Kardon Computer speakers with subwoofer, it does fine for $6 from the second-hand store (I love that store)
Any way I look at it, I am in full control of the sound

.
Second, let me tell you about a little trip to Disturbia I had recently (liked the film, I am a bit of a Labouf fan and the movie was pretty cool). My friend and I show up just in time to catch a couple minutes of the DLP playing the pre-pre-show ads and previews (I like that, I saw a kick-ass Heroes preview last year when I watched a movie), so far so good, it wasn't in keystone (can't bleme them if it wasn't optical keystone, I will take quality over geometry any day), but it was sharp and bright even with the pre-show lighting all on. I looked for Pixels and I didn't see any, and I think it was a 20' diagonal screen, maybe 30'.
Fine I think, about time they invest in a DLP of high quality. Then the film started, the lights dimmed and a garish projector image appears, it scans off the sides of the screen and in this theater the screen goes to all the way to the side walls, so it looks bad, not only that, the jerks have installed an "Exit" light on the screen, not somewhere where we can see it, but right on the edge of the screen, WTF?!?!
I get past that, until I realize that the lights have dimmed and I still can't make out contrast on the screen, and it is flickering like a son-of-a-bitch ( I can't even use a CRT Monitor @60hz, flickering bugs me), but since it is so dim it doesn't bother me all that much.
Upshot, turn down the DLP until it stops making the movie look bad,
Or start playing digital movies on it!!C'mon you dumb movie companies, with hard drives at 500GB for $100 apiece you could have 2 movies in 4 megapixel resolution, striped and parity across 3 hard drives in a re-usable caddy. How much does it cost to print a film? How much does it cost to image a hard drive? For under $10,000-20,000 a screen the media, player, and DLP (or whatever, have you guys seen the new 2-axis "Laser DLP"?), It is ridiculous when a movie theater can't offer a better experience than $600 worth of home theater, including a LL eVo.
Last gripe, quality of movies, nothing in the last 2-3 months has been really worth seeing, Spiderman, crap, etc etc etc. I am more interested in the plot of
Who killed the electric Car, or
Tron, or the latest "Modern Marvels", Now that TV is in HD, the movies are an insult to our intelligence.
In fact for 10 grand, how about somebody set up a screen in the local high-school Gym and play HD-DVD or Blu-Ray releases. Maybe that can get some news coverage, it would look better than the theaters I go to.
Popcorn, ugh, I am allergic to Soybean, and thier "butter" gives me the worst indigestion, I only like Orville Redenbocker's Pop Secret with the right amount of Yellow butter (not one of these flavorless white butter brands), and proper Sea Salt from the health food store. And they expect me to pay for the privilege of eating that crap they call popcorn? Shame.