Paglia explains in Arion, a publication from Boston University, how a renaissance in American art can only happen through religion. She said that and she's an atheist. She's either bi-sexual or a lesbian (that's vague), a libertarian, pro-choice, a Democrat and she knows more words than you and me combined. She's also one of the sharpest cultural critics alive.
In Art and Religion in America, (PDF found here.) she explains the arts have been at the center of the cultural war between the left and right. As is her style, she criticizes them both for their failures - the right has mostly not engaged in art and the left has obsessed about it and often reduced it to self-absorption. I strongly agree with her that now is certainly not a high point for American art and that the real genius of America is in her technology and business arena. Seems a bit of a waste not to spread the genius out a bit more.
She writes: Great art can be made out of love for religion as well as rebellion against it. But a totally secularized society with contempt for religion sinks into materialism and self-absorption and gradually goes slack, without leaving an artistic legacy.
The article is rather long-winded and she seemingly explains the entire history of America and art. Closer to the end she gets into the rise of modernity and slipping of religious influence on art, except perhaps using religion as something for artists to attack to show they were free from it. (To do just the opposite is also a form of imitation. Georg Christoph Lichtenberg) It was interesting to see how many former Catholics played a part in the attacks on religion through art, from Serrano's Piss Christ to Maplethorpe's bizarre sadomasochistic photography.
She concludes by saying that conservatives need to get over such things as their fear of nudity in art (Europe could teach us a few things about that, as could a tour of the Vatican) and the left needs to start recognizing the fuller costs of secularism and reducing most things down to economics along with our tremendous spiritual poverty that leaves us facing a soulless future.
G. K. Chesterton makes a point about all of this sort of thing, quoting the artsy hero Oscar Wilde who said that we don't appreciate sunsets because we can't pay for them. GKC countered that we can pay for sunsets; we can pay for them by not being Oscar Wilde. One suspects that Wilde, who converted to Catholicism on his deathbed, would have eventually agreed.