From what I've read about Hollywood, you had your Sodomites, Communists and anti-Christians back in the 30's and 40's- it was just that America was so traditional that the Studio Presidents had good sense to keep all the shenanigans out of the news. It wasn't that Hollywood degenerated in the 1960's, it was that it was unveiled.
There are plenty of Christian writers, directors, and actors who, if some Christian studio would start up and nurture them, could produce some awesome movies.
Sherwood Pictures, of Albany, Georgia, has made some great movies. They are affiliated with a Baptist church.
We need more companies such as Sherwood Pictures to provide competition to the sewer of Hollywood.
There are Christians making films. Pure Flix is one and the Kendrick brothers made Fireproof, Courageous and a few others.