Take apocalypse now: a great piece of art. Was it worth the pain and suffering of its production? Absolutely not.
Hollywood should implode and hopefully the art form will resurrect for the better. But for me the primary reason is that they don't live up to what they are supposed to do. Creating good art.
Do I want movies to survive? Sure. But Hollywood as a thing was about vacuuming up every penny it could and that I do not grieve.
I agree that the good stuff is just a result of shotgunning, for every great movie, there are 100 that are forgettable. But we have the habit of concentrating power in one place, so I have no clue how it could be otherwise. Sure youtube is an alternative with myriad of independent creators, but it produced totally different outcomes.
If you want to make something non-trivial, you need investment from a capital holder. Even Indie movies spend tons of effort on funding and investment and trying to have cashflow to make something happen.
The death of hollywood does not change this reality, it simply changes which capital holders you must seek patronage from.
Hollywood was sex pests and morons sure, but so are the rest of the Capital holders we have. Big movies will still be beholden to the rich, because the rich are who have capital.
The shape of the system hasn't changed, only the names of the people at the top.
This is so naive, I can't even begin to tell you how wrong you are. Hollywood is the first window into the western way of life for many third worlders. And if you knew how the third world really is, they are much more racist, much more primitive than the West.
In reality, Hollywood opens up people into western culture - openness, rationality and so on.