I mean the MPAA is in the right as far as the letter of the law is concerned. But i don't see how fanedits hurt their bottom line.
To me hollywoods problem is crappy shit movie making, over budget cgi laden pieces empty of creativity or imagination as far as storytelling is concerned. Too many killing/sex movies with big explosions and no plot. Too many comic book adaptations, too many remakes sequels and prequels and reboots. Not much original material.
The technology of filmaking and special effects have achieved a high point now historically but over time films have gotten more mundane, less creative and less good acting and story telling. You look back on the real gems and classics from the last hundred years or so and today films are pretty much watchable only once and as dissposable as the music of today is. Whereas the cgi artists and animators have gotten incredibly good at what they are creating and doing and have achieved a technological leap forward. Movies can be creative with their music, set design, makeup, and cgi and costume design. They can be a thing of beauty in terms of craftsmanship and design but overall lacking in humanity or the thrust of the story.