This article from Christianity Today is a few years old, but encapsulates the wide variety of opinions about Christian films and their place in the world. Me? I'm remaining cautiously oblique on the best method. Without Hollywood's budgets, it will be hard to compete on Hollywood's turf, but without a solid alternative distribution method it would be hard to compete otherwise.
The idea of a "replacement industry" is intriguing, but has a lot of logistic challenges.
Should There Be a Christian Movie Industry? - Christianity Today Magazine