Born in the silent era, with the first ceremony hosted by Douglas Fairbanks at the Roosevelt Hotel, the Oscars are a tradition in a business that doesn't have much of it, and the biggest spectacle in a business that's often nothing but.
You can't blame movies for embracing spectacle; filmmakers since D.W. Griffith and Cecil B. De Mille have loved spectacle, and spectacle is something that movies convey like no other medium, especially in a digital age.