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Why cant nips make good hentai anymore?
It has either ugly art style or shitty animation. Sure, back in the days everything wasnt as gorgeous as pic related, but there was some good stuff here and there.
I don't know, maybe Im just getting too old.
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Three theories:

1) They're making less "good" hentai because it isn't profitable. Animation costs money, and it's harder to recoup that for a product you can't air on TV and that people are embarrassed to buy in stores.

2) They're making just as much "good" hentai as they always did, but less of it makes it over to the states. Maybe modern fansubbers have different taste, or maybe fewer or different series get licensed.

3) They're making just as much "good" hentai as they always did, but even more bad stuff. The flood of crap makes it harder to find the "good" stuff, even though there's just as much good stuff as there always was.

Now, go put together a research grant, get funding, and figure this shit out. For science.
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It's the first AND the third. They do make good hentai sometimes, like Star Jewel, but it's more rare than it was before(like you said, it takes loads of emoney to animate). AND because industry is bigger now, they're making much more cheap stuff. For example, dreaded Queen Bee, taking dick-exploding good hentai manga, coloring pages in photoshop or something and "animating" in flash. So, so much wasted potential.

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