Most people don't go to the theater (or even stream) to watch "quality," they go for entertainment. Artsy films might have a lot of artistic quality (like The Green Knight, for example) but most people don't care, they'll watch the latest blockbuster, which is where studios make the most money. For the people who do watch artsy films, understand that the blockbusters make the bulk of the revenue to even greenlight artsy films; without the mass market films, there wouldn't even be any artsy films (of a sizable budget like 10 to 50 million dollars, not true indie or art house films).
Interestingly, it would be ironic if, were these strikes to go on for a longer time, studios would simply think to invest more into AI which doesn't have the sorts of problems mere humans might, hastening the demise of writers and actors. This must be why it was reported that negotiations broke down as soon as AI was thrown in there, they definitely want to bet on that as the future and I'm not sure what leverage actors and writers have, honestly. It seems like whichever way the strike goes, studios won't budge on that issue.
Edit: removed art house label as it was inaccurate.