The sad thing is, even a lot of hollywood productions lack story, some really shouldn't even be called films, but more like special effects projects.
Exactly.
I hate seeing Matrix like special effects promos on tv. When I see one, I just know that's not a movie I want to see. They always have some big star(s), but for me, I think "so what?" There are 1,000 movies just like it, all sound and fury, but in the end, signifying nothing.
There have always been tons and tons of bad movies, throughout the age of film. Our time is no exception, although some periods have better quality and others have worse. The first films weren't great, but nobody cared because it was new. Eventually, the silent films got to be very good. Then soundtracks came along, and again film quality deteriorated because nobody cared about it, everyone just loved that people were talking in the movies.
Same thing happened with color...same thing has happened with new special effects that have came out in the last decade or so. The quality of movies I've seen the last few years just isn't as good as it was 10 years ago or when I was a kid. Maybe I'm seeing things with bias, but that's my opinion.
I think there is one other thing we need to consider here. That is life conditions. We, in the U.S., live comfortably and perhaps with excess. IMO, this doesn't lead to great stories as a people, with one exception, domestic case-studies. These are some of the very best films I've seen in the last 10 years. Also stories with conflict between subgroups of society. These are genuine conflicts that are archetypal. On the other hand, the age of excess brings about a lot of bad, contrived writing. Writers who have nothing to say, and instead of writing conflict because of how they can see it in the world genuinely, they instead contrive it. And those movies almost always suck.
This will sound a little out there, but I'll make a prediction. We all know the economy is going in the tank right now. But you know what? I think it will produce better stories in a few years and/or in the next generation. That's my belief anyways.