Hollywood often makes movies that are absolute stinkers
They also tend to underestimate the market potential for movies that don't insult people's religion, as in "The Passion of the Christ." Gibson made the movie with his own money and had a hard time getting anyone to distribute it. It made several hundred million at the box office. Meanwhile, several Hollywood "art" movies may cost upwards of $100 million and flop. A good percentage of the time, it seems ego rather than marketing drives the movie business. Some, like "Get Shorty" are dreadful crap that's nothing more than a collection of insider jokes. What made them think many people wanted to see that, which was your original point when you claimed "Hollywood makes what people will pay to see."