Standard digital movie projectors are 2k which is a little more than 1080p. The picture looks so good because the projector is colour calibrated for accuracy to a standard and the theater is blacked out to maintain contrast ratio.
The digital film is encoded in dci-p3 colour which is a bigger range of colours than TV broadcast standard of rec 709. Also the digital movies in theatres are totally uncompressed.
Basically digital theatres meet every technical standard to high degree without cutting any corners.
Home projectors and TVs cut a bunch of corners like using 6 bit decoding chips and heavily compressed video streams that destroy detail. Overall resolution isn’t as important as the other factors because there are limits to keeping video sharp anyway such as lens resolution and motion blur.
4K is just a marketing term that attracts people because bigger numbers make sense to people. Content providers could provide a bigger quality bump by providing higher bitrate streams.
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