That's fascinating. Couple of points. First off, I don't believe the current business model is sustainable in the long run. The sure bet thing, which has resulted in so many geek properties getting the big budget treatment, is the same reason we're getting a Candyland movie. With that many ginormous movies coming out next year, with an average pre-marketing price tag of 100+, the only way they can possibly be profitable enough to continue with is raising ticket prices. Sooner or later, what with likely ongoing economic woes and the shorter and shorter screen-to-DVD window, people, especially families, are just going to stop going to movies.
That said, I can't believe they'll stop making movies anytime before armageddon. They're one of the biggest industries in the world, and even if Hollywood somehow collapses into anarchy, they're going to keep making films. Distribution may change, but product will be a constant. I would be delighted to see the industry forced to reinvent itself in some fundamental ways. You're right that the outlaw 70s totally paved the way for Jaws and Star Wars, but isn't that just going to be a cyclical thing? Jaws and Star Wars happened because of course they happened, and at some point new movies will have the same effect on the world. But we might have to let everything break a bit first.
Another thing about the westerns. The revisionist westerns that came out of the death of the studio westerns were, to my mind, the greatest achievements in that particular genre. And this from someone who went through years of parental John Wayne indoctrination. There are way fewer westerns now, but they're generally way better than the innumerable quickies rightly relegated to the dustbin of history, specifically because they're not the most profitable things to make.
I see upheaval as interesting times, and I also see it as inevitable. This crazy ass 2012 schedule is going to be pretty fun to watch play out. It's possible a major studio folds, or more than one. There will be entire genres that could go away for awhile. Zenith might be the wrong word, it might be the Tipping Point. Again though, I think this is something that has to happen periodically, and hopefully, it will lead to more creativity, better storytelling, and innovations.