My old house had a designated home theater, problem was we used it 3 times in 5 years, so when we built the new house I decided it was a waste, I expanded the gym to 1000sq feet and scrapped the home theater all together. BUT we have 3 parlors, 1 is our formal parlor which has no tv, just a couple juke boxes, one of my 2.2 systems, some furniture and our bar here's a picture of the front 1/4 of it, this room is open to the entry way, dining room, stair case, with a loft over about 30 % of it, the rest has ceilings as high as 24 feet. Our "living room" parlor is just for us, its in the back of the house, has our a TV hanging over the fireplace, and my 5.2 system, that is where we watch movies and TV for the most part.. Our third parlor is in the guest suite, its about 300 sq feet and has a 2.2 system in it that is both for music and TV, but used mostly for music, sometimes when I want to be "home" without being "home" I sneak down there and listen to music, the couch is very comfortable....
So we didn't go for the full home theater, it was an option but we just don't watch a lot of TV and to watch a movie, it normally either in the bedroom or the living room, and I watch movies in 40 minute intervals... Even my kids, I see them watch 3 movies a year, just not big on tv in my house, more music and with the kids video games... But I agree, its nice to have, and impressive when done rite, but the problem with my old theater was I would fall asleep, it was too dark and it was away from the rest of the house, so if I wanted a sandwich or bowl of soup
I would have to go all the way to the kitchen and make it myself, now with the living room off the kitchen I can just ask my wife to get it.... The smartest thing we did when building this house was split it in quarters, 1/4 bedrooms, 1/4 utility, 1/4 entertaining, 1/4 guests so we use 1/2 the house regularly and the other 1/2 is sporadically used...
I have the RCA dog in my parlor like in that picture...