The movie industry has eras, marked by certain production styles. In Hollywood at least, the 1970s was the era of the auteur director. A wave of directors (and actors) who had apprenticed under the famed B-movie master Roger Corman came to power on the strength of a series of absolute masterpieces. It started with
Easy Rider, which was shot on a very low budget, and received massive box office success and critical acclaim. It ended with
Heaven's Gate, an outrageously expensive disaster that has never even been properly released (I've seen one of the medium-length edits of it, and yes, it stinks).
The real end of the New Hollywood era, though, was the release of Star Wars in 1977. It paved the way for the sci-fi/fantasy blockbuster. It turned into a successful trilogy, and overlapped team-wise with Spielberg's fantastically successful Raiders of the Lost Ark. Hollywood, and movie fans, lost interest in the more intellectual fare of New Hollywood, in favor of kid-friendly, cross-marketing-friendly entertainment.
So it's not surprising that there was a dropoff in critical darlings after the 1970s. Movies got a lot worse - they really did. Even directors who carried on the New Hollywood traditions, like David Lynch and the Coen brothers, couldn't see the kind of success the 1970s directors had.
Of course, before the New Hollywood era, Hollywood kinda stunk, big expensive extravaganzas. Critical attention then turns to the French New Wave, and other post-WWII European film with small budgets and big emotional punches (who makes a movie like Wages of Fear these days?).
I wonder how our current era will fare? I'm thinking about the sort of epic-story serialization that the Marvel franchise and the reinvigorated Star Wars franchise is doing. How will that be viewed?