low budget games aren't art? umm.... have you ever heard of independent games? Games like The Blob, Gish, Everyday Shooter, flOw, AudioSurf, Darwinia, DEFCON, Eets, Chaos Theory, etc?
I'm sorry but your point about low budget games was just crushed completely.
But to completely destroy your argument. Hollywood movies tend to end up going into sequel hell. Independant Films are always new, different, low-budget, and pretty good. Even indie film's worst, for example Dragon Wars, beats the hell out of most of Hollywood's typical crap they put out.