“Hollywood” is a conglomeration of stakeholders.
Many financiers would be happy to only make family Christmas movies if those made top box office.
There are also 100s of ideologically-captured gatekeepers, from film schools to fellowships, that rigidly enforce progressivism.
Does Hollywood create culture or just reflect it?
I'd say a little of both. It's a cycle – and if anything Hollywood is always a little behind. They're trying to hit a moving target. For a typical film it takes anywhere between 2 to 5 years between greenlight and release. But if you take a snapshot of what's happening in entertainment it's a fairly accurate reflection of mainstream society at any given time.
Studio movies are almost by definition meant to appeal to as wide an audience as possible. Which means trying to be inclusive but not alienate anyone – a difficult balance to be sure. But if anything, most studio bosses would rather err on the conservative side. Why? Because movies cost millions upon millions of dollars and these people are by nature risk averse. Maybe things were different in the 1960s and '70s when they took big swings on untested filmmakers with movies like EASY RIDER and TAXI DRIVER, but now they have quarterly earning targets to hit.
I think some of these "Hollywood is too woke" folks are simply mistaken about what the people want. They are one person. These companies on the other hand are using every tool at their disposal: data analytics, focus groups, test screenings, etc. Of course, they're not always right. Maybe you think you know better. Or maybe, just maybe you don't have your finger on the pulse the way you think you do.
Social progress moves slowly and even slower in Hollywood. I'm old enough to remember when WILL & GRACE was considered to be a groundbreaking show. Now people are raving about HEATED RIVALRY – and not just folks in the LGBT community.
Here's the TL; DR. Hollywood wants your money. And yours, and yours, and yours. If there's an appetite for it, they will serve it to you. And it's their jobs to know what goes on the menu.