I spoke recently to an older church musician who was telling me her war stories of how her congregation flipped it's collective lid when they introduced a new hymnal. Some of the songs had new copyrights and had been published by Bill Gaither. Oh, the horror of it all. Of course now those are considered "old standards" and folks are busy worrying about the "new" music being played in some churches.
The bulk of what is getting published is not really all that great. That's the way it is in all genre's of music. Most of it will be forgotten in a few years. And maybe a few songs will stand the test of time. It's been that way since the creation. Take a look at the CCLI top 100 and you'll pretty much see what I mean.
The industry model has been used for years in Southern Gospel. Of course there wasn't huge money in it. Sure you could afford to have a nice tour bus and stuff but you would have to tour almost constantly to make ends meet. A used bus, lots of polyester, big hair, and a Peavey PA system, that was living large. The difference with the "rock" genre is there is a bit more money to be made.
The real issue, I think, is whether churches are just becoming entertainment venues. Coffee shops, rock concerts, self-help courses, and not much preaching. It's particularly noticeable in the megachurches but don't kid yourself into thinking the small congregations that sit on street corners all over the U.S. aren't doing it, too. It's every bit as much a threat to the Church as the politicization of congregations.