You are correct, but competent actors do both. Most well known Hollywood actors do some stage work to sharpen their skills, and nearly all British actors perform on stage.
The problem I see in Hollywood is not in production or acting; it is in the scripts. Most are pathetic. Even blockbuster movies with expensive special effects are painful to watch a second time. Science fiction is the worst offender.
the other category of bad script is the one in which all the characters are rotten, the situation is rotten, the aftertaste is rotten. Who wants to pay money to spend an hour and a half with people you would edge away from in the subway?
I was speaking to that when I mentioned "Man of La Mancha." Nothing wrong with that script.
Shalom.