My uninformed and probably stupid thoughts:
Hollywood was doing some amazing movies in the 90ish (think Seven, The Matrix, Requiem for a Dream etc). It was a mix of new and established players that were allowed to innovate and be creative. Then Hollywood became more risk averse, I assume because sales were unpredictable and production companies wanted guarantees similar to other industries' large investments. So they started recycling ideas, produce sequels and trading IP rights for dudes in specifically colored spandex suits, which came with a guaranteed fanbase that would watch anything with the brand. This eventually became the MCU-type of crap where everything is a 4th wall joke packed with references to current events, leading to a shelf life less than a year and plots became an afterthought. The sales mindset went as far as putting stuff in the movie for the sake of producing a compelling trailer. At the same time TV was taking the Hollywood's lunch money, but for some reason they doubled down on the approach and blamed streaming for their failures.
The issue isn't the format though, or that everyone has Netflix on their microwave display now. There are still great movies today, and if you get a chance to watch one in a good theatre it's a mesmerizing experience. Me and my partner watched The Joker, 1917 and Dune in Alamo Drafthouse (a theater that has zero-tolerance to texting/talking and serves food & drinks). It's an experience that trumps even great TV shows, when done right. It's just sad that it's so rare.
Covid caused a lot of smaller cinemas and chains high in debt to shut. But a lot of them are still going.
Cinemas are pivoting more to the luxury experience rather than just being the place you watch new movies. So they will get bigger screens, better projectors, better audio, etc. It's already started near me.
And before someone says "go build yourself a home cinema": this is the UK. There's no such thing as "free space" in most homes.