My whole take on it is that the industry embraced Nirvana because they were different. But Kurt wasn't a great musician. Hell, he wasn't that good. A friend of mine and I sat down with his entire collection and learned every song in less than an hour. This was after he died. I never really liked his music, but I could tolerate it. All I heard was about his great lyrics. To me, they weren't really all that either. Introspective herione induced tripe was my first impression.
I am not trying to get flamed for this, it's just that my first impressions of Nirvana weren't all that great. Yeah, I was a "hair metal" fan, but in the vein of Judas Priest, not Winger or Skid Row... I was then and still am a fan of Black Sabbath, AC/DC, et al.
To me, what Nirvana did for the music scene was to show people that you didn't have to be a good guitarist or great songwriter to make it. He opened the flood gates for the drivel that I have to bear when I turn on the TV (which isn't very often) or listen to the radio (again, not very much).
It seems that the level of musicianship has gone down over the years. I read a study that showed that the average time in years for a guitar player in the 70's was about 18 years before they hit it big. The average in the 80's dropped to about 12 years. In the 90's, it dropped to 5. I blame the industry. Always looking for the next new sound, and trying to mass produce that sound, sacrificing a lot of quality.
When the statement is made that the industry is looking for the next Nirvana, I don't believe they are looking for a Nivana clone, or a band with 3rd rate musicians and angst-ridden song writing.
I believe they are looking for a band who will shake up the industry again...