2002 was also when broadband internet and movie piracy became more prolific - DivX was just out, DVD burners became a thing, etc. Streaming video was in its infancy, with TiVo and VOD slowly becoming a thing (although that only reached mainstream in 2007 when Netflix launched). DVDs and DVD players became mainstream, as well as flat TVs, HD video, etc.
Anyway. The tech in the movie theaters did improve by a lot since then, 3D was a fad but we get 4K, imax, Dolby Atmos, etc nowadays. But it's not as popular as back then, cost and convenience probably being important factors, but the lack of long exclusivity (it's now only weeks sometimes until a film is out on streaming) and the overflow of media nowadays isn't helping either. The last really popular film was the Marvel films and the last Avatar film, other than that it feels all a bit mediocre or unremarkable.
I wonder if that's the other factor. The 90's and early 2000s were for many people the highlight of filmmaking - this may be a generational thing. But there were years where multiple films would come out that were still remembered fondly for years or decades after.
Meanwhile, I couldn't name you a single good or standout film from the past year or years. Nothing I remember anyway. I think the combination of the LotR trilogy and the Star Wars prequels ruined films forever for a lot of people, in a good way for the former and a bad, cynical one in the latter, lol.