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Even if it gets good enough, you're forgetting about everything else that goes into movie making and distribution. Hollywood will keep their hold on media, they just might use AI to increase profits even higher.
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But why Hollywood?
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i am extremely wary of making any predictions about ai, given what's happened in the last year, but i would put good money on hollywood being around in 2 years. there's much more to the movie industry than slapping some video together.

r/stablediffusion seems to be a bit disconnected from reality, to put it nicely.

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The vibe I get is like when the Meta VR app store product launched, and there was huge promises and optimism about all the amazing apps and experiences, but when you bought it and actually tried, it was a few juiced up flagship things and a bunch of shovelware.
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ehhhh i dunno about that. the stuff i've seen from people, and watched looks much better than most crap hollywood puts out anymore
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to reiterate: there is more to the movie industry than putting a video together
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Please post a link to some of this "stuff". I'm begging you.
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I'll pass on slop stories and the quality of the visuals won't change that.
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