It's not a bad idea mate. Whilst you are still coming up with ideas I would not worry about money or anything like that, just start sketching some plans.
I like the idea of an immersive gaming experience, having large scale screens and huge sound systems would be great. The themed rooms are a nice idea, it would be good to have interchangable scenery for different themed games.
What Arcades have that home gaming does not is that sense of immersion and occasion, the sights sounds smells and touch all contribute to an almost theatrical event. You could possibly do that with your idea.
I know you are just shooting ideas into the wind, but why not? Start yourself a little local gaming community, start small, keep it focused on the atmosphere and experience of playing games and expand slowly. The only rule is trying everything and not being afraid to make mistakes.
The US military has, for recruiting purposes, made a sniper game in which players are in a small room with a 360 degree screen and handed an arcade sniper rifle. This was for free in a mall.
Then an individual company that makes stuff like this went a step further and did exactly what the military did, except without a sniper rifle, a rolling floor (only capable of pushing you to the center) to simulate movement, and being shot at by paintballs in the correct direction. The game lasts for roughly one mission of a Halo game.
As for your idea, you're missing as to why theaters are big to begin with. When it comes to screen sizes, you actually want to be in the right porportion of screen size to distance from the screen. So if you are literally right in front of the screen, you want it to be small. Whereas if you are far away from the screen, you want it to be bigger. If you have too big of a screen, it becomes noticeably harder to look at everything quickly which is considered annoying. For the controls, it should be holdings something that feels like a gun or just go home and play Halo.
Dave and Buster's. That's what. Too bad the only decent stuff there is L.A. Guns, Ghost Squad, Mario Kart GP 2, and Super Monkey Ball. Food and overall atmosphere is damn nice though. Best burger you will ever eat.