Agreed with your last statement. And let me put in a caveat that there's more to Los Angeles than celebrity spectacles, and as a resident of the city, I'd be sad for you to think otherwise.
However, since you mentioned the NY fashion week, I decided to check out the Olympus Week schedule. And from the Fall 2006 line-up I found two celebrity design lines, Baby Phat and Sweetface. Alright, so far so good. However, as for commercial appeal vs. real design merits, I was able to identify about 20 labels that I can safely have displayed little design merit (in a creative way) , including Custo Barcelona, Nicole Miller, Max Azria, Kenneth Cole, Heatherette etc. If you feel that I've erred in marking these brands as thoroughly commercial, do let me know.
That's 20 out of 82 total shows, which is not terrible, but not inconsequential either. Of the other labels whom i did not include in my list of explicitly commercial 20, I'm not aware of the design merits of many. I hear mixed things about Zac Posen, and whatever little I saw of Luca Luca online left me unimpressed.
I'm certain that there is plenty of design talent in NY, as I am convinced that there's plenty of it in Los Angeles as well. Perhaps a lot of them don't find their way into these fashion shows? If there are any particularly stand out design talents among the Fall 2006 line up, I'd appreciate if you could point them out to me. I'm a lay person with an interest in fashion, so may not always be the best informed.
Speaking of being ill-informed, for some reason I was under the impression that Rick Owens was NY-based. Turns out he was an Angeleno