One working definition of art is: Truth revealed through beauty. Now if this is the case, then any project which is neither beautiful nor truthful cannot be called art.
Let's apply this definition to cinema.
Hollywood is certainly preoccupied with that which is beautiful, and even seems to have a pretty good handle on it --an obsession with it might be more accurate. But truthful? Hollywood truthful? That's debateable. Truth in Hollywood shifts constantly. Perhaps the most positive take on that sad fact is that such malleability might be what makes Hollywood so versatile. If different people have different takes on the truth then we benefit from a broad variety of stories coming out of Tinsel Town.
Such a beautiful town full of such beautiful people. But are they also truthful people? I guess that's where one draws the line between craftsmen and artists.