Not counting The Passion, which was not a Hollywood film, Box Office grosses are actually up this year from last.
Shh. They're on a roll. What's really happening here is the decline of the movie theatre as a place to watch Hollywood studio productions. Bad for theatre chains (especially since they've done a lot of building lately), not so bad for studios. The theatrical box office only accounts for a third or so of their revenues, and that portion has been in decline for years, replaced by DVD sales and rentals, PPV, cable, etc.
I mean, just think about it, people. Is anyone arguing that entertainment in general is becoming less popular? You say people are staying home and watching TV? Who do you think makes TV shows? Hollywood studios. Read the credits. Are they listening to music? Who owns the record companies? The studios. Are they playing video games? Okay, that's a bit more independent, but not much, and most major action films have a licensed game.
Everyone rubbing their hands in glee that the summer box office numbers are down, and thinking that it's some long-deserved comeuppance to Hollywood for their multitude of sins just doesn't have a clue as to the big picture.