"Hollywood," the short-hand reference to the concentration of entertainment companies in LA, is obsolete. It used to require physical proximity for the thousands involved in making a movie, and a lot of specialized and expensive soundstages and gear, with a large employee pool of experts. That also supported lots of non-movie entertainment, such as music and TV.

The advent of computer graphics, and now AI, makes that model unnecessary. It's possible to make a major movie anywhere now, with much cheaper gear and fewer people. And since the entertainment business has always been about profit (what else?), it makes little sense to continue to do things the old-fashioned expensive way.

Nostalgia will still support some vestiges of the Hollywood legend, but the world has moved on.