Actually yes, I would definitely read something like that. The way you described it makes it sound appealing and very interesting.

The theater idea is especially fun. You could go a lot of different directions with this one. What exactly is this part of the trial supposed to "accomplish", from the Black Veiled Woman's perspective? Why is he sent here? If you figure that out it might help with where you're going. As is, I'll offer some of the suggestions that popped into my head while reading this.

a) Perhaps the Theater is like a giant ant trap, meant to lure souls in but not let them out. Whatever they may find on the movie screens is either so appealing or horrifying that they are forever frozen in place, unable to tear their eyes away from what they're seeing and eventually wasting away into nothing. Perhaps there are specters or other wispy phantoms there that Charlie would see. Silent, nearly invisible echoes of their former selves that now have no purpose but to Watch.

b) Maybe he goes into the Theater and proceeds to watch his "life" on the screen. It shows him nothing but the most horrible, petty things he's done, painting himself in a negative light.

c) It could be that since the Theater is in a realm apparently outside of the normal spectrum of space and time, past and future really hold no meaning. Even if something hasn't happened yet on earth, it could still be seen here. Maybe Charlie sees scenes of varying time periods. Perhaps it would try showing him what will eventually happen to humanity in the future, which would likely be nothing good.

I also like the idea of the Theater as an almost living entity. If you've ever seen Rose Red, something like that.