I wholeheartedly agree - the LDS film industry is pretty sad. We accept the substandard quality of the writing, the acting, the editing, and the music often because we are just so happy to support LDS artists. It's like buying a video because your cousin helped to make it. Honestly, as a culture, LDS people have not demanded excellence in film. We are too excited that something is LDS-based to care how bad it is.
I agree with what Howe said, the issue is that I am sure most LDS directors would love to produce better films but the they do not have the budget for it! Some of them even use some of their own money to produce the film and the little money they get goes to the production crew and main actors (the rest usually are not paid and they do it just for the credits), so I think it can be improved if they would get better sponsors.
I think what Howe and LDS said are true. We really do rush out to support any movie with good standards, let alone if their LDS. And many of them are pretty low-budget. But to add one more thing, LDS moviemakers are really so few that you can't fairly compare their quality in general to that of movie makers worldwide. We are just barely starting to get a little bit of variety in our little movie circle - there is just starting to be enough out there that you can pick and choose to avoid the cheesy/low quality LDS-made films and still be assured that there might be a better one within a year or two.
I don't particularly gravitate toward the "mormon comedies" but I have really enjoyed the Work and the Glory movies. The article link seems to be expired so I don't know exactly what it or Richard Dutcher said, but I know there are a lot of people that don't particularly like his movies either. But they seem to have more thought involved, from what I have seen, than some of the others. I also enjoyed The Other Side of Heaven, and was pleased when it actually came to the theater in my small Oregon town.