I finally got around to reading this article and he makes a lot of good points. I think what is missing most of all in the Hollywood of today is innovation and competition.
I'm reading a book on the silent era and even then many were afraid to innovate. Virtually all of the techniques of motion pictures existed in 1905 or so but until D.W. Griffith set Hollywood on its head with "The Birth of a Nation" did we move from the static 9 foot line, one shot per scene film to what can essentially be called the film world of today.
There was so much innovation then. Abel Gance experimented with camera placements when he made Napoleon. Carl Theodore Dreyer made a film about Joan of Arc that was told almost exclusively through the human face. Buster Keaton helped turn comedies into more than mere pratfalls but with a coherent story and characters you cared about.
Then sound came in and it was all "Oh Dee Oh Doe Dee Oh!" on one side or static drawn out dialogue on the other. Suddenly everyone in the movies spoke like and as much as a New York City playwright. Early talkies are interesting but in the rush to reinvent the wheel a lot was left behind with sound. Still, the art moved forward and many great films have been made in the 84 years since The Jazz Singer. A lot of horse shit has been made since.
The number one reason that films of today suck is the need to make a fast and secure profit. Hollywood accounting is basically where the studios can figure just about every film to be a loss or to break-even on paper. Now clearly this is meticulous but it's the way Hollywood operates. Many films also lose money at the box office and yet continuously make long term profits in the home video market (Gods and Generals for example) but because they aren't going to make 10 bajillion dollars on opening weekend, the studios just don't care.
Independent films aren't all that much better despite what people seem to claim. The Japanese, Hong Kong and European studios occasionally release a gem but honestly, they probably have the same good to crap ratio as Hollywood if not worse.
It's rare that I see a good movie and I will even confess that I enjoy some bad movies from time to time. The modern film output might be worth 90 minutes on a snowed in day but when I have so many better films to watch I just skip the multiplex and instead go with Blu-Ray and DVDs. The popcorn is better at my place anyway.