Interesting thing is, some of the smaller movies, with relatively unknown artists, are doing quite well.
I think Hollywood forgot how to make "B" movies. That was a staple of the old Hollywood.
Actually, they do it all the time. This year's numbers are nothing to be alarmed about, actually, they just need a story. It's a period of expanded "epic" production, which will contract a little. It's not a big deal at all.
I don't think Hollywood forgot how to make B pics, though--I think that's all they make now, with A budgets. Independent movies are just as crappy as Hollywood flicks--you have to trudge through a lot of either kind to get to a gem. That's always been the way.
I do think you've got the right idea, though Hollywood doesn't seem to know how to exploit it. They should give more $$$ to (or start) low-budget arms--say, give $5 million budgets to a bunch of upstart filmmakers to make anything they want, or even $1 million budgets. Spread that cash around, let directors make script-oriented movies instead of star-oriented ones.