what a waste, I am all for an immersive experience, but that is only ever going to be achieved in a controlled single person environment, and not a theater.
Call me weird, but I love movie theaters that are more social in nature. Back home in Cali there was a theater that use to be a performing arts theater, and I loved going there for shows because the audience was so responsive. I thought it would take me out of the movie, but in reality the 'mob mentality' kicked in and I think we all enjoyed the experience of cheering for the hero and booing the bad guys a lot more than a quiet theater.
There are ways of mixing select chemicals to create wide varieties of smells. Perhaps they are doing this? In which case this system will be infinitely better than "Smellovision". I think that all of these advances will eventually pile up and improve until your actually playing out the plot as seen in Star Trek Voyager with holograms!