Yeah, I'm steering away from industry/anti-industry arguments; they are often moot. Good and even great work will get done in spite of the music industry's efforts to quell anything other than that which operates at the lowest common denominator (bottom line).
I don't dig on Radiohead, but you could do a hell of a lot worse...
In terms of pop/rock, one need only look to bands like The New Pornographers, Broken Social Scene, Fiery Furnaces et al to see there's still something "there." Will Oldham, Cat Power, Smog are still kicking a couple around. Nobody here has probably heard of Sunset, but he/it are really onto something special in terms of long-form, progressive pop suites.