I think two things make formula attractive to a writer who is trying to break through:

1. The Advice Factory claims that the industry (gatekeepers, producers, etc.) wants formula. This advice SEEMS valid because there is so much repetition in stories that get filmed, especially the blockbusters, but even in the more independent films.

2. Formula appeals to a fledgling writer because having seen a lot of movies, appropriating formulas from those films makes you think you're doing the right thing.

My opinion on these attitudes is too long for a response--I'll try to publish it later as a separate post--but here's the nutshell:

1. The industry does not want to make formula-laden films, they want to make a profit (which is fine; after all, they're bankrolling the venture). You make a profit by making films that an audience will pay to see. So the emphasis should be not on satisfying whatever you think the gatekeepers are looking for, but on what would satisfy an audience. (This is where your wisdom on story comes in, Scott.)

2. Writers who devote themselves solely to coloring within the lines of formula will never get in touch with their own inner self, with what the writer NEEDS to say. If a story doesn't engage the writer, it can't engage an audience.