If by Hollywood quality you mean that it's professionally produced to a high standard (of production, of course), than I don't see what's bad about that. I only said I value content quality much more than production quality. Great content produced to a high standard is better than the same content badly produced.

There are some great movies out of Hollywood.

Would they watch so many if they weren’t available at every movie theater in town and every streaming service on earth? A lot of attention has been devoted to such movies that would have been invested elsewhere in other efforts if movies didn’t exist.

High sales != quality. Maybe high sales ~= lowest common denominator?

High sales doesn't mean quality but it does reflect the choice of the majority.

So if we were to move to a world where high quality productions were not feasible anymore for some reason or another then by definition most people would find this to be a problem.

No, I think the majority would just take what they're given.

Most "content" is "consumed" just to have something to do.