I don't think movie theaters will ever fade out, and if they do it will most likely not be in our lifetime. There's somethig about watching a movie on a big screen and listening to everything in surround sound that makes the experience amazing. It's very hard to recreate that feeling in your living room, even though we've come very close with the increasingly high size of televisions and surround sound systems.
No matter what the streaming quality is of the service you use at home, unless you erect a theater size screen in an acoustically suitable space and install theater seating, it's just not going to be the same experience. Watching a movie at home isn't the same; in a movie theater there are no interruptions. Because you can pause the movie at home, people are more likely to get up, leave the room, answer the phone, etc.
Fading out, no, becoming less popular, yes. The ticket prices are going up all the time as Hollywood needs to inflate its' budget for no reason, so more and more people will choose streaming on demand, if given the chance. However, there will always be a market for a proper theater. Kind of the same as with music and vinyl, I guess.
