Fortunately, none of the recent movie musicals have been as misconceived, or done as poorly financially, as "Star!", "Hello, Dolly", "Dr. Doolittle", "Camelot", "Paint Your Wagon", or the myriad other bombs mentioned that killed off movie musicals in the 1960s. ("Mamma Mia" and "Sunset Boulevard" might head us back in that direction, though--so might "Sweeney", if they screw it up, as I fear they might.) If that happens, it happens. Movie trends move in cycles, and the movie musical very well might go to sleep another decade or two and be revived again, as the Western was recently.
As for Travolta, I loved his "Hairspray" work and agree he was worth his fee--I only wish they hadn't gone nuts with those facial prosthetics that made him so hard to understand.
I ask in all honesty/What would life be?/Without a song and a dance, what are we?/So I say "Thank you for the music/For giving it to me."