Sure you have to deal with those things, but the point was more that big studios have big cost and need high returns to be satisfied. (Everything from property, salaries to paying star actors)

Small studios don't need as high a return.

This is in many ways a Clayton Christensen (The Innovators Dilemma) opportunity.

Producing high quality movies as ultimately a question of people and skills. There are plenty of both that can't get work anywhere else.

I don't understand why I would have to convince people to not watch those movies? They are still being sold today and people are still watching non-hollywood movies.

If it becomes impossible to be profitable with big productions then hollywood will kill itself soon enough.