55” TVs have been available for decades but not affordable. I purchased a 60” plasma TV about 2 decades ago but it cost about $2500 dollars. Now I can pick up a 55” 4K TV from Best Buy for $220.
The widespread affordability of large screen TVs has absolutely eroded the value of a movie theater.
Also 220 is in the same ballpark as going to two movies as a family with snacks. Three would already be a stretch.
A 55” Rear-projection television was way less than a 60” plasma TV back then. Like you I went a little upmarket but from what I recall budget 1080i options were well under a grand.
What matters is the premium over a normal TV and how long it lasts. Spending an extra few hundred for something that lasts 5+ years wasn’t going to break most families budgets. As demonstrated by just how many of those TV’s where sold.