I would amend this statement to read it is the "hit" music that is not worth listening to. There are a lot of great bands out there driving from smoky bar to smoky bar in beat-up vans, playing in front of small crowds simply for the love of performing live. They will never get record deals because their music doesn't fit the current Top-40 format that dominates today's radio and MTV.
I sometimes think that the day of multimillionaire pop stars are coming to an end. Sure, there's a few but their careers are so short-lived because they posess no real talent. As you said, they can't even play instruments (much less write their own music). Their only key to fame was that someone else successfully marketed their good looks.
The industry execs don't get it. They blame downloading for a decline in sales without understanding that most people download music that they would A.) not purchase in the first place or B.) from bands that do not have recording contracts.
You're right, except those smoky bars don't exist around here any more. When I was younger, almost any building with a roof (not necessarily a good one) was turned into a road house. When the drinking age was raised to 21, they all went out of business. These road houses were the music industry's version of the Minor Leagues. It's where people with instruments became musicians. They not only learned about music, but about the equipment that makes it. How many times have you run to a Radio Shack to get a 12AX7? Or a new speaker that you knew you were going to fry, but they have a 90 day guarantee that you'll use to get your money back?
Do you still have places like this where you live?