True. Things seem to have gotten worse with the advent of streaming. Besides the shorter down time, the relatively cheaper price, convenience and how the pandemic conditioned people to watch stuff at home, the effects are much more apparent though.
Yes and no. I think the pandemic "boosted" streaming ahead of where it would have been, and that gave a lot of studios and corporations the false bravado to go all in on streaming thinking The Future Is Now.
But that hasn't panned out. Disney is notably shifting away from an emphasis on streaming to refocus on theatrical releases, and subscription numbers haven't lived up to projections for a while now. Notably this spring/summer has already seen a bit of a rebound in terms of tickets sold to theatrical releases. I doubt it'll ever go back to the way it was before, but I do think the reports of the theatrical release's demise have been greatly exaggerated.
I think that, as we continue to get further away from the pandemic, you're going to see an increasing willingness for audiences to go back to the theatres. Arguably we've already begun to see the start of it.
Again, this won't be a full regression, but it leaves studios in a bit of a bind. Their projections for streaming being the future were a bit premature, and viewership/subs hasn't born that out, but streaming isn't so dead that they can just shut the services down. It's a thing people broadly like, enough to take a chunk out of theatres' profits, but not as much as everyone expected as things level out post-pandemic, so studios are left in this limbo where they can't really commit to one over the other.