Hollywood has gone downhill for a variety of reasons. I've listened to a number of podcasts with writers, directors, talent agencies, etc. Their analysis of the problems are below.
Money Reasons
1. Quantity over Quality. Streaming services need "content" so crap is churned out (i.e. Disney, Marvel) and the genre is run into the ground, til dead.
2. Corporatization. Almost every major studio is publicly traded, which means it's run by "suits" whose main concern is the stock price, not storytelling.
3. Marketing/IP. Related to the above 2, the Execs want movies which are easily marketable, (i.e. a known brand/IP/franchise), so sequels, prequels, etc are churned out, because they are "safe" and less marketing $s are needed, due to the public awareness which already exists.
Story Reasons
4. CGI over story. Money is spent on special effects, in an attempt to "wow" the audience, while top screenwriters are ignored, in favor of newbies. The script/story suffers.
5. Scripts get changed. Top directors/actors are given "creative control" to change the script during filming, which often results in poorer storytelling.
6. Good writers = TV shows. Since writers aren't paid well for movie scripts and their stories get changed for the worse, the top talent has moved to tv shows.
Acting
7. Acting is subpar. Actors are chosen who believe in "the message", who are liberal and who have favor with Hollywood's "values". Talent still matters, but not as much.
8. Nepotism. Self-explanatory. Most of the young actors who are related to "legends" can't act. But they are "part of the club" so they get hired.
Message Over Story
9. Script requirements. Often a director is given a list of "things that have to be in the movie" (i.e. a cool car, funny jokes, things which they can sell in toy stores, a love subplot, a diverse cast, product placements, specific locations for sets, etc) and then a writer has to cram all that into a story and have it still make sense. Doesn't work.
10. Liberalism/wokeism. When directors/actors get "preachy" then story often suffers and characters don't act like real humans.
All of the above kills the creative process and originality. It is the opposite of being imaginative, fun and entertaining.