The money is there. William Bennett's gambling losses alone could have provided much conservative arts funding. Yes, yes, I agree, Bennett's private property is his to fritter away however he pleases. Even so, what a waste...
(Ironically, while big money and mainstream conservatives largely ignore the arts (apart from boycotting them), the poorer libertarians and Christian conservatives have made modest attempts to support their artists (via awards, grants, and the market), through the Libertarian Futurist Society and Institute for Humane Studies, the Dove Foundation and Christian Cinema.)
Regrettably, the idea of offering grant money ("money for nothing") to artists, and afterward to allow artists to follow their own visions (no accountability) goes against the instincts of both conservatives and libertarians. Plus boycotts, although creating nothing (and you can't fight something with nothing), are more fun for bloggers and webzines, and bring higher ratings for radio and cable TV shows.
Years from now, I expect conservatives will still be organizing new boycotts, even as the Dixie Chicks and Susan Sarandon complete new projects. I only hope that libertarians will steer a more productive course.