Yes, Hollywood has been going downhill for years. It's to the point where it's all comic-book movies (yech, hate 'em, as they tend to be light on the plot/background and heavy on gunfire and explosions), and remakes that almost always suck more than the original. Throw in sequels, yech, they're nearly always worse than the original (there are a few exceptions).
Last movies I saw that were worth a damn were the Lord of the Rings trilogy - while they didn't follow the books precisely, they were good stories. The effects were great as well, but the story was emphasized more than flashy CGI.
The Hollywood suits are afraid to take risks, so it's the flood of same same old tired remakes and sequels. They know the sheeple will suck it up, never noticing that they've basically seen the same premise/plot before with different faces. They know if they put enough flashy special effects in there people won't note that the story sucks...they've dumbed down movies such that 8th graders can keep up with them.