Has anyone else ever seen anything like that?
The last time I was in a theatre was, well... when did Beyond come out again? So if our local theatres have moved to assigned seating recently, then I wouldn't know. Although I don't really have a problem with the concept in general, I do think it is nice to have the option to sit in an area that doesn't have a lot of other people around. (Even when I do go to the theatre, I try to make it late enough in the movie's run so that the room is only sparsely populated.)
Although our trains have "recently" (within the last few years) changed to assigned seating, which I think is absolutely brilliant.