Do people actually want more live action or LLM slop remakes of animated classic movies? I understood it as a cynical IP-milking from corpos, but if consumers want them... why?
This is of course inspired from that "AI entrepreneur" douchebag that spent $745 to commission a treat printer to print out a shitty and soulless whitewashed version of Princess Mononoke and assigned himself that title the way that putting a quarter in a gumball machine makes someone a candy entrepreneur.
I don't mean to disagree with your main point, but LotR famously won an enormous number of Oscars. "The Return of the King holds the record for most Oscars with eleven alongside Titanic and Ben-Hur." They're some of the most awarded films in the history of the Academy Awards.
My own understanding (that I refuse to research, I am lazy) is that the live action ones did numbers in China, where they aren't sick of CGI-fests that dominate modern Hollywood films