Like porn and tubes, people learned to adapt... or die.
It's much easier hiring 20 geeks to CGI the fuck out of everything rather than hire 14,000 extras at $100 a pop because their self entitlement and their unemployment make them think that they are worth all kinds of money for just being present and taking direction.
It's NOT the film industry, it's the hired help coupled with the ability of technology as well as PIRACY that has fucked things up.
I am pretty sure there are a BUNCH of film makers, writers, directors, producers etc. that have wonderful ideas for "EPIC" films. It's the profit/loss margin as well as the budget that does not make it come to fruition.