This article gets a standing ovation from me. I agree with absolutely everything in it.
Regarding the question of applause, it rather depends on culture. Here in the UK, we're a fairly reserved bunch, and it is extremely rare to see anyone applauding in a cinema. I've seen it happen three times: 1) During Raiders of the Lost Ark (the scene with the Arab swordsman), 2) During Back to the Future (the scene when Marty is chased by Biff and his gang and he improvises a skateboard) and 3) During the final act of Star Wars, when I saw it in 1997 during the 20th anniversary rerelease at the massive Odeon Leicester Square screen, London, in glorious 70mm. (At several points - Han Solo's return, the destruction of the Death Star, the medal ceremony at the end, and the end credits themselves. In fact, I've never seen anything like that Star Wars screening. It was an atmosphere of absolutely electric enjoyment.)
Also, speaking of Star Wars, apparently when George Lucas first showed the film in Japan, it was met with total silence. Worried the audience didn't like it, he asked about why, and was told this silence was the ultimate act of respect. Again, it all depends on culture. :)