The only part of this I really agree with is that the music industry is harming artists more than usual. It is a meme at least as old as jazz or even older (Baroque music was so-named because it was said to be lopsided, like a misshapen pearl) that music ain't what it used to be.

There is still great music being made, and the really deep stuff has always gotten ignored by most people most of the time. Heck, I majored in music and I don't listen to Bach or Coltrane every day. That stuff is too rich for every occasion.

I'd say that innovation within genres - just people making good songs - is every bit as important as creating new genres. New genres aren't automatically created at a certain rate. They're an event, triggered by major social changes or new cultural influences most of the time. For America to invent a new genre we might need to conquer or be conquered by someone else, or have a new wave of immigration.

Some good artists currently making popular music with depth and interest off the top of my head:

St. Vincent, Dessa, Chris Thile, SquarePusher, BJ Cole, Run the Jewels, Billy Joel (I list him here because rather than just repeating his same hits forever, he went and recently released a classical-style piano album that's quite good, so he's still growing and changing as an artist), Tori Amos (she's been making music a long time but has a new style every decade or so).