I can see a 3 hour movie for $12. Why would I ever take a vacation to New Zealand that costs me $3000? The dollars to hours ratio is way out of whack!
I mean, I'm with you guys in that I have a number I feel comfortable paying for, and it's a sliding scale in relation to quality but it has a limit (say, a 5 hour game will probably never get more than $30 out of me), but comparing video games to going to the movies makes no sense. I have never, ever sat there and said "should I go to the movie theater or should I play a game?" They're forms of entertainment, but not substitutes.