"I disagree that people tune into this broadcast to learn about the films. I think it is the celebrity watching people tune in for."

Nothing wrong with either reason, as well as other reasons for choosing to watch or not.

I do agree that last nights show was not very good entertainment. With live shows, it is difficult to manage. Jon Stewart was a bit stiff, the music playing under the speeches was tacky and insulting, but I did enjoy the rap song, Dolly Parton, Robert Altman, the gay western montage, and a few other moments. The speeches of George Clooney and Reese Witherspoon were heartfelt and endearing.

"this really has become an exercise in celebrities worshipping themselves and one another"
I honestly see nothing wrong with that. While many people think that creating films or television is easy work, it can be very hard. The work that these people have created deserves recognition, in my opinion. What you may consider "worship" is often congratulations on a job well done. Sure it may go over the edge, but we need opportunities to celebrate our victories and accomplishments in all walks of life. Ang Lee, who could not afford rent when he first came to Hollywood, is now at the top of his game.   He deserves to shine.

"Hollywood is a very scary place"
So are Des Moines and Hackensack. It is what you make of it. Most people can see beyond the vapid trappings and recognize the true art that gets created there. The Academy Awards CAN sift through the crap and recognize the films that make a difference.   Sure, the studios (or what is left of them) may be financing these "independent" films - but there spirit and message is not being shut out. To my way of thinking, that is an example of art shining over corporate trappings.