Why does this not exist?

This does exist, just not in Amurrrica. There's a big-ass "Film Museum" right in the center of my city that only shows old films.
 


some of those are still around, its pretty good fun watching some classics in those, they got their own crowd...
 
This is somewhat on-topic. I was stationed in the the mid-west when I was in the Air Force... Kansas of all places. Thing is tho, they had BOMB ass movie theaters. You could literally walk in, pay like 5 dollars extra for balcony seating if you so choose, otherwise ground level. But the seats reclined, rocked, and were situated around tables. Every single seat had buttons to page a waitress or waiter to order anything from steak and lobster, to mozzarella cheese sticks, and here is the kicker.... ALCOHOL, both liqueur and beer... *edit - thought I would mention, prices were comparable to ordinary theaters here on the west coast.

Then I move back to California and nothing like that exists.

By any chance a Warren Theatre? Warren Theatres

They even have a cry room where parents can still watch the movie if the baby starts to cry so it wont bother the other patrons. Pretty dope place.
 
Quentin Tarantino Keeps A Classic Movie Theater Open; Who’ll Save the Rest of the Country’s Indie Theaters? | /Film

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For those that don't know, Cool as Ice is arguably the worst movie ever, while Citizen Kane is arguably the best. This is the type of thing that I would do too if I had a theater.
 
There's one in my town. I hit it up every weekend just to see the classics I wasn't old enough to see on the big screen. It's one of those "dinner and a movie" places so you grub out on an awesome meal and watch a classic on the big screen.
 
Theaters are dying because of the home viewing experience. So you suggest they take the only current upside of going to the theatre (new hit movies), and replace them with movies that have been out on blu-ray for years now?

Do you not understand why they are failing and the fact that big budget and 3d movies that are more entertaining to watch in a theater than at home is what is keeping the industry together?