Don't blame the industry, blame the people who pay big $$$ for albums, concert tickets, and song licensing. There's a lot of people who pay good money to see/hear terrible music. The music & industry execs. just follow the money.
This is also why so many "performance artists" are merely products themselves to be packaged and sold. This has gone back to the 80's with Madonna...and maybe even further, but Madonna is the most relevant and egregious.
Do you really think someone like John Lee Hooker would ever make it past Simon Cowell today? Hell no... But while musicians like Muddy Waters, John Coltrane, etc. live on and grow their fanbase past death, these new 'products' will come and go as quickly as the products they're being downloaded with. Very little staying power IMO...and their productions sound absolutely terrible with all the compression & strange effects they use to make whoever's screeching into the mic sound somewhat less offensive in a Speak-n-Spell kinda way.
As to why people 'hate' Justin Bieber? It's probably b/c of over exposure and his beta-male look. When you're beat over the head with marketing, you start to rebel against it consciously or unconsciously. If everyone on your block had BMWs...would you buy one?
People like to have what no one else has.