It’s not “modern” Hollywood. Hollywood has been pretty consistently trash over the decades, most adaptations in the '90s were shit as well.
Of course no-one’s going to beat PJ at LOTR. Because no good creative is going to be interested in the challenge when PJ already did the thing perfectly so only soulless corpo-ghouls think a remake is a good idea.
But there are still flukes like LOTR from time to time when the moons align and funding goes to actually talented creators. Two years ago we got Dune, this summer we got Barbie.