The music industry isn't devoid of talent at all. There is a lot of talent out there and even the majority of the mainstream acts that you are referring to have talent. The problem is in the higher ups that want to run the music business more like a car business (if this one is popular, build another one just like it). When a major label signs an act, especially a young act, they generally start forming that act into something else.
I work in the music industry and I can tell you, there is a lot of talent out there. Sometimes, as a consumer, you have to search it out. Its not always going to find you. CrimsonAudio is also in the music industry and I'm sure he would agree that there is plenty of talent out there (hell, he is talented at what he does).