> I don't know what needs to change for things to get better.
Studios need to start creating custom engines again, for one. We'll get better games with less unsatisfying jank, some of the projects will actually cost less (which is paradoxical to some) and performance is likely to jump significantly. Off-the-shelf engines have as many costs as they have benefits, but like a lot of technology people refuse to look at the choice as a trade-off, and to the extent that they acknowledge it's a trade-off the implicit admission is always that it's a trade-off that the user/player is paying the most for, so it's OK.
If companies start creating custom engines en masse again it will also help solve part of the competency crisis in the industry, because they'll be forced to actually learn and educate people on how things work.
Do you actually believe in what you wrote above?
Game studios should choose CryEngine/Decima again over UE5