Hollywood is going through the same kind of glut that the music industry is going through: the fact that it is easier to make and distribute the media means that more mediocre productions will saturate the market.
Simply put: it's easier for people with little skill or talent to produce a CD or a movie. That leads to more crap being produced.
But that doesn't mean there aren't gems being made.
Let us hope for the day when talented pro-American writers can make movies cheaply and bypass the studios entirely.
The same amount of raunchy crap seems to always have been produced (going back to the 1930s). And that is true of music, films, and comics.
HOWEVER, it wasn't the industry establishment that was marketing the biggest trash.
The idea of "standards and practices" went out the window as the anti-establishment baby boomers came to power in corporate America. So now we have "Holy SH*T" ad campaigns from Volkswagon and mutilated nipples as the half time show at the Super Bowl.