I think you make two unrelated points. One of which is true and pretty much dismisses the other.
Point one:
Quote:
Originally Posted by fjtorres
The field has evolved and diversified far beyond what any of the cliques can credibly proclaim. So people mostly go on with their lives, ignore HUGOS, DRAGONS, and (unavoidably) NEBULAS.
The entire AWARD system has lost relevance.
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That is true. Which is why all old-timey awards seem to be losing relevance. Not just the Hugos. Nobody is watching the Oscars either.
The internet and the increase in fandom has made it much easier to find what's good.
Point two:
Quote:
Originally Posted by fjtorres
The awards are issued by a tiny clique of self-selected "critics", a narrow-minded monoculture out of phase with the vast majority of readers...
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That seems to be a popular opinion of those of a certain political stripe. But that is not what caused the recession of interest in the Hugos. As already mentioned, the internet and fan's ability to communicate with each other makes the award less relevant.
You can tell by looking at the backlash of some to recent Hugo winners. They tend to focus less on details of the book/novella/story itself and instead focus on PC Culture and soforth.