Who cares? The Hindi Film Industry is the largest in the world and entertains over a billion people in countries all over the globe. They can laugh all they want...it's not like we need some sort of validation from the West.
95% of hollywood movies are garbage too.
Not really. I've actually been impressed by the amount of good Hollywood films this year. A lot of people don't watch less known, but really good films, like Winter's Bone.
I don't watch a lot of Bollywood myself. 3 Idiots was of course, brilliant. But, there aren't many that match that film's calibre. Although I'm looking forward to the 3rd Munnabhai, that stuff is hilarious.
South Indian films are wierd, and I say that as a South Indian(of course, brought up in Dubai for the majority of my life, but this place is pretty much Indian). There are some absolutely horrific scenes. Will find them and post them sometime, although I'm sure many Indians might have seen them already. They are funny, in the "wow, this is so horrible, it's funny" way, but I'd rather watch a movie with a proper storyline than a film with horrible, unrealistic stunts.
But, you know, in the end, India's culture and humour is different to Western culture and humour, so I guess if people find it funny, then it's entertainment for them. And I tend to respect their form of entertainment, although I do dislike it.