This might be a unique opportunity for both the theatres to supplement their audiences (and income) and for audiences themselves. How many times have you heard about some interesting production that's running for a limited time at a theatre in some other part of the country and you just cannot make it to see the production in person, even if you really wanted to do it? You would never have had the opportunity to see that production...but now, potentially, you can.
I don't think this is meant to replace in-person theatre-going, as most of the streaming over the past year has done. I think this is taking the technology and knowledge that's been gained over the past year and applying it to bring regional theatre productions to audiences who would never have had the opportunity to see them at all. Sure, there will likely be a small percentage of audience members who live next door to the theatre, but who would rather watch the show from their living room, but so what?