If it is correct that two cinema chains have submitted applications and backed off due to planning officer and EH requirements, then matters did not get as far as a formal planning application as far as I can see.
It is not a completely free process to put in a major application, and I would guess that a corporation would back off it seemed likely that there would be difficult conditions.
There is clearly an element of 'democratic deficit' here. The fate of this building one way or another is clearly a legitimate matter of local concern. The majority of local residents might well come to a different view on the balance of conservation and current use factors than the planning officers'.
Perhaps the answer is a proper formal local consultation on the future of this building which should cover all issues, including the balance of existing and future use against preservation.