Why Does Hollywood Keep Making Villains Sympathetic?

A lot of this boils down to 'any of these concepts can be done well, some just require more talent to make work than others'. And there's a lot of untalented people who get work with ideas beyond their ability to execute.

This isn't a new problem, though we can only talk about the examples we're aware of. I feel like the reason the issue is worse now isn't because more things are shit, it's that we can now watch and read more from the creators online. Which lets the audience see how different what they thought they were making is from what they achieved, or how poorly they receive criticism and turn on their audience, or how little they understand about what people enjoy in their work.

Matrix: Resurrections, being very meta, has a scene where characters discuss what people liked so much about The Matrix. And besides people liking different things (and rarely more than the first film), it's an exercise in believing their own hype and grandiosity. Hence, bad sequels.