You make many good points. But the problem with stating that taking a stand with the industry does not make sense in the long run. The general public who does not understand the medium are right in to a point to be critical of the videogames. Many representations are very unprofessional, and many consumers are rightfully called immature.
While I would like to believe that the industry is ready for a growth to respect, it is not something which will change for quite some time. The target audience is young, and consuming the same games over and over. The artistic games sell, but there is no comparison in profit. As long as this industry continues to produce the same types of games and they continue to turn profit, there is no need for drastic change.
I am not saying this is right, it's just what I see.
Furthermore, this problem is not exclusive to the games industry. All media has seen a degredation in content and expression to make way for profit. It has been art verses business out there for quite a while, and business is winning. Talent and passion are no longer rewarded, there is only the capacity for the mass production of a product for mass consumption of an audience.