You are right but I doubt this will incentivize the 'right' people - and besides that, having gone nearly 200 years without darwinian selection there's a much deeper sickness in the state of our populations. Policies like this are a bandaid on a gaping IED wound and at best only marginally slow down the decline when the only thing that can rectify us is a total collapse of civilization and the darwinian conditions that follow.
This would be very dank but probably wouldn't last. Hollywood types can very easily relocate and would flock to and then destroy Neo Hollywood within a couple years, since conservatives are never willing to hold the line and deny entry to retards.
Floridawood would bend over backward for the first big name actor marginally to the right of Mao who decides they don't like "cancel culture" but emphatically support all the cultural rot that causes it.