You seem to think that amateurs are all talentless. Many of the guys playing in the pubs have been playing and singing since they were children, and taking lessons, and many majored (or at least minored) in music in college. I have some friends who are very talented, talented enough for the RIAA to want them to sign contracts. They laughed in the labels' faces. They're not making product, they're making art.
Art and commerce are usually at odds. Van Gogh sold only one painting in his life, to his brother, for a pittance, to pay a debt. Meanwhile, none of the paintings in the galleries then are in the museums today.
Look at the old Ska band Reel Big Fish. Their first several CDs kicked ass. They were signed by Britney Spears' label, and my daughter bought that CD. It really sucked donkey balls.
Look at Stephen King's remarks about James Patterson. "He's a terrible writer, but very successful." I've been reading Patterson's When the Wind Blows and... well, not terrible, not even too bad, but he's no Stephen King. The book I'm reading he keeps changing perspectives from first person to third person, which was bad enough when describing things the 1st person character didn't experience, but later in the book uses the third person when the 1st person narrator, who isn't narrating, is there. That was a big WTF? But almost every time I see a women with a book, it's one of his pulp fiction murder mysteries (which is why I'm reading it, I wanted to find the secret of his success. Too bad the secret is murder mysteries, I hate them usually).
Remember Milli Vanilli? Caught lip-syncing on stage and it turned out they didn't sing on the album. How about the Talking Heads? Terrible singing, uninspired musicianship, but they were new and different. The music industry isn't after quality, it's after "new and different" because that will garner them what they're in business for -- money.
What you hear in a good pub will very often be far superior to what you hear on the radio. The professionals are in it for the money, the "amateurs" (like the Jungle Dogs, who held masters degrees and taught music at SIU in Carbondale) are in it for the art.