I have read the news about the Swedish Academy. I was a bit shocked.
I remember when I was a wee little undergrad and had some lit and art classes, my professors always told us not to be too impressed by awards. Apparently, the general public enjoys that sort of thing but among writers, artists, and academicians, it's pretty well-known that:
just a very small group of people give out the awards (like a committee of 5 people per award)
it's very political
art/lit criticism has trends just like pop culture does
most damning of all - almost all of them just give awards to each other (speaking of the small, more local award-giving bodies)
The last one was really an eye-opener. One prof told us to check a list of the award winners and the committee members (of a local award) there was considerable overlap, especially if you knew which artists/writers were in mentor/protege relationships.
I'm not saying every award-giving committee is corrupt but rather, I suspect that they tend to be just people patting each other and their friends on the back to say "good job."