No, I don't think it is completely overlooked. If it was there would be NO good music to listen to at the moment, and clearly there are plenty of great artists around. True, they might take a bit of searching for, but if great music is important to you you'll find it.
I'm no musical expert, by any means, but I'm just thinking of Adele, and Jessie J, and Eliza Doolittle right now - all very talented. If you want to listen to great music, there are good radio stations to listen to that promote new artists (artists who can actually play and write, and who work hard to promote their music rather than just waiting for a lucky break on a ridiculous 'talent' show). I enjoy BBC Radio 2 on a Saturday afternoon (aye, it's British, but it can be caught online too - Dermot O'Leary's show has bands and artists in session, and they're usually excellent.
There is plenty of talent around, so I think it's only part of the industry that overlooks talent - personally I ignore that side of it, and I choose not to listen to the crap music. I suppose it's a good industry in a way though, since it keeps a lot of people in jobs: that's important right now, no?