You don't always have to make progress for something to progress.( Geez, that kinda statement just makes you hate the english language, doesn't it?)
Art progresses in different ways than other fields, it progresses through time and styles and artists and fads and all that other stuff. Progress does not equal improvement, it just means movement. Art moves from idea to idea, era to era, and so on and so forth, sorry I just can't speak poetically. If something cannot progress, it dies (or is already dead) and since art is neither dead or dying, it must be progressing, just not in a fashion that most people associate with the word "progress". And yes art does evolve. Evolution is nothing other than changing to meet the needs of a new environment, it does not mean that it is improving, but you have to admit that art would not be around now if it was still just crudely drawn cave paintings.