Do you feel that filmmaking in general has declined?

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I chose the forth option, but I'll explain:

I think there are more movies of very high caliber released each year nowadays than, say, in the 1920s, and probably even through the 80s. However, I think that todays big studio films are generally much worse than the big studio films of the 30s and 40s. Not that everything in the 30s and 40s was gold, but most of them were at least decent, if not fantastic. Nearly all the best films of each year these days come from the indie market, though there are a LOT of them.

That's true, almost all the good movies this year were indie.... but it is ironic that since the big studios are getting better and better at making any special effects they want in a computer, and they are getting worse and worse at plot, character, and screenplay.....

Movies in the 60s 70s had more storyline and backbone to them. these days movies are missing that. though there are some class movies such as Fight club,donnie darko,office space,se7en, tenenbaums and many more. but there are few and far between

You are exactly right! It seems that they just take whatever is popular at the time, and they right some weak story line around it, and they release it as a movie. Of course, in 10 years mobody will remember the movie, but they turned a small profit on it, so nobody cares. Moviemaking is no longer an art.