Saw an article the other day that said, basically, that the under 30 crowd has grown up with the internet and file sharing as a part of life. We older folks (the over 30 crowd) have not, so we still operate on the basis of 'want to see a movie? But the DVD, watch the MovieNetwork/HBO or go to a movie theater'. While the under 30-crowd still go to movie theaters, it is mainly to see either hot must-see films or films that just look better on the big screen (SciFi, 3D, etc).
The idea of taking away the free movie content they have grown up with is like, well, the government shutting down all lending libraries and saying 'it violates copyright to lend books out - if you want to read a book, go to a bookstore and buy it'. Obviously if they did that, us older folks would protest (not that I use lending libraries anymore, but I did when I was in my teens and 20s).
So Hollywood has responded by making more 'big screen films' on one hand, and pursuing file-sharing sites on the other. They want to roll back the clock to a time when everyone was happy to go to the movies or buy a DVD (like 1990). Of course they have always wanted to stop progress, and didn't like TV or VCRs, etc back in the day. They need to adapt their business model to have an easy way to sell downloads for like $1., but they don't want to cut into their DVD sales. However the people buying DVDs are not for the mostpart the people who do downloads.