I think you can get a older film too perfect to watch on dvd but the laserdisc i was watching last night still had the film changing dot in the corner. Now i heard that 35mm films for the theatre are on the way out. The old 1929 theatre in my town has 2 projectors but they now set up a dvd player in the seats & project it on the screen maybe im old fashioned but i want to see a film from the 35mm projectors imperfections & all.

Even with the print damage the accumulates over time 35mm film still looks better than any home format. I know DVD's start to really show their limitation when you get into larger projection setups, I can't imagine how bad they would look on a full sized movie theater screen.

Also I'm no expert on legal matters but if your theater is charging admission to watch DVDs I think that could get them in a lot of trouble.

No, the studios sell licenses to show DVD and Blu-ray in theaters. We showed both on our 5 story IMAX screen. With a good player, DVD holds up quite well and Blu-ray can look better than an actual film print due to the inherent jitter 35mm has, not to mention poor quality high speed duped prints.