I think one of the major problems is that the consumer is now the producer (and I think that phrase refers to a complex economic/philosophic problem whose origins escape me).

With cheap digital cameras came a plethora of 'photographers' who were suddenly 'content producers'. Within months, the market for quality content online went to shit, as webmasters figured a 2Megapixel camera, a skank and a garage with a mattress in it equaled content.

With cheap MiniDV cams came 'directors' who figured a cheap DV cam, a skank, a man with a boner and a garage with a mattress in it equaled a porn scene.

As Loopnode points out, they're just horny guys with a camera. And while this might seem like a sweeping statement, it has serious basis in truth. Male talent stepped behind the camera to give us porn they way they wanted to see it. Fanbois stepped behind the camera to give us porn they wanted to see.

Neither party necessarily produces porn that consumers actually want to see, which is why there are more misses than hits. And this is then perpetuated by sham awards shows which shower the favored director/producer of the hour with gongs. This in turn then insprires Joe Blow to pick his camera up and make a movie 'just like XXXX made'.

In a world where the consumer is the producer, your market choices become massively limited. It is now so cheap to produce gonzo versus porn films which, while they aren't features would at least have a higher production value, that the market virtually demands gonzo. Let me explain: if you throw together a gonzo flick that costs you X dollars to make and wholesale offers you 7 bucks a unit, you're going to take it. If you produce a gonzo/feature that costs XXX dollars to make, you're going to want more than 7 bucks a unit. What does the retailer want? Cheap flicks that won't stay on his shelves long.

We have brought this upon ourselves, both as porn consumers and producers. Quality will always win through in the long run, but it will take years to become apparent. In the meantime, the world and his brother picks up HD DV kit and steps up to the plate, pushing the violence envelope and hoping they'll find that winning niche without too much consideration as to what the consumer actually wants.