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I have to say I completely disagree. It deserves no recognition whatsoever. The American movie-going audience knows nothing about film in general, they just know what they like. This may seem like it's enough but personally I don't.
The Grammy's are working nowadays the same way that you're talking about the Oscars. You see people like Lil Wayne winning a grammy for his TERRIBLE song Lollipop. Now, Lil Wayne has made some good albums but Lolllipop is a giant piece of commercial shit.
PEOPLE DON'T KNOW WHAT'S GOOD. They just go "oooh, shiny". Most people don't view entertainment as art, and thus, they should not have any control over what constitutes a "good" or "bad" film/song/etc.
That's why we nominate these certain people to judge the Oscars/Grammys because they know the technical/artistic and other aspects of films and music and can make decisions based off that, not just because there was a lot of explosions and a long sex scene (that showed tits).
In short, people don't know shit. Commercial success doesn't mean shit. Lets not equate money-making with good cinema.
I share your cynicism.
Box office shouldn't mean anything. The quality of the film is what should be considered. And while I would agree that the Academy fell for some Oscar baiting with The Reader, I would say that the fifth slot for Best Picture should go to Doubt and the fifth slot for Best Director should go to Christopher Nolan. However, I get really tired of people constantly complaining about "stupid artsy movies" that always get nominated. The only movie nominated last year I would call artsy is Atonement, and that's a stretch. This year you have Benjamin Button (amazing film, the best of the year) and The Reader (which I haven't seen). And I already said that The Reader shouldn't be in there. Frost/Nixon, Milk, and Slumdog Millionaire are definitely NOT art films.