I guess I just don't get the Chicken Little attitude about it. Hollywood has been like this since Heaven's Gate failed. Heaven's Gate killed the decent budget auteur films that drove 70's cinema.
I am replying to all of it, but ust quoted that part.
The amazing era of Hollywood cinema from the late 1960s until 1981 (Raging Bull) did dry up around Heaven's Gate. However, they still were releasing mid-budgeted dramas, comedies, and an assortment of other style of films
for adults until the early 2000s.
Further, the independent market thrived from about 1994 to 2004, creating a wealth of mid-budgeted films that gave us filmmakers like Quentin Tarantino, Danny Boyle, David Fincher, Sam Mendes, Darren Aronofsky, Christopher Nolan, Stephen Soderbergh, Paul Thomas Anderson, even Kevin Smith.
Yes, they had to struggle to get their first efforts made, but all of those filmmakers could move on and develop a reputation. As you pointed out, the Coens and Paul Thomas Anderson struggle in 2014 to make a movie on a comparative budget to 1994 or thereabouts. Tarantino may have had to scrape together for Pulp Fiction, but then the industry would bet big on him immediately afterwards with Jackie Brown and Kill Bill. Now, that environment is dying or dried up. That is why so much creativity is shifting to television, because the only movies getting made are either painfully cheap or exorbitantly expensive, and either way, creativity is greatly limited.