Is Theater Still Relevant in the Modern Age?

Recently, I have attended several productions ranging from Spamalot to Into the Woods.  As I am a person who is often curious, and I usually arrive fairly early, I started looking around at the audience.  Except for Into the Woods, which was a high school show, most of the audiences were in the 40-senior range.   So, it begs the question, is theater relevant in a modern world of technology?