mikeh -
I recall my parents making the same arguments 20+ years ago. Back then there really was no such thing as do-it-yourself - reminds me of a Chicago band called 'Off Broadway' that was all over local radio, but couldn't make a dent nationally. They sold 80K copies of one album in Chicago, and maybe another 20K total in the rest of the country - of course it was a 'major label', so they were dropped as a flop. Today they would just run their own label, make a nice living off local sales and gigs, and try to do a 'Dave Mathews' by taking over one region at a time on their own terms.
The guys I see now making a 'living' at this are typically middle aged and without kids to support - solo or duo singer/songwriters selling CD's at gigs, driving themselves to places that will pay a few hundred bucks and allow original music.
I guess I keep holding out hope that there's someone up here who is flying under the radar, placing album tracks on Mongomery Gentry albums, or something. For all the Taxi 'A&R Panel' blurbs about looking for a tune that rates a perfect '10', I'm begining to doubt even that would matter. If some nobody on this forum posted a song like 'I Hope You Dance' (or any other 'moster song of the year'), would they get a call?