Except that it costs a LOT of money to press over 2,100 prints of a film. I suspect that Lions Gate (via Artisan) had some sort of contractual obligation with Bollworks which required them to release the flick theatrically. I believe that the LG folks really know their horror fare, which is...
Check out this article, which was written by an aspiring screenwriter who dealt with Mr. Boll on a regular basis. Just hilarious. As I state in my review of Alone in the Dark: somewhere, Ed Wood is resting pretty comfortably right now.