Having been on a couple of sides of the music industry - used to play in band, used to write music columns - I must say that this discussion is quite exciting and accurate (er, except for the dude that keeps talking about peanuts - does he have a share in a peanut factory?)
Anyway, you are all right about the state of the local music scene. The media don't know what's out there except what they've been told: The Obs, Electrico, Ronin, Concave, etc, only get to the newspapers because someone told the papers about them.
If you want to make it big as in U2 big, forget it. Not here. Singaporean audiences are not ready for original music becos they have been "fed" by overseas music.
It's true we may not have that deep a history, but there is still an interesting history - just that nobody knows about it. So how to write about stuff if you don't know about it? How can you draw on all that emotion?
You want to play Singapore blues? Imagine yourself as a foreign construction worker waiting to make enough money so that you can finally go home to your family, your woman, your dog.
Or imagine yourself as retrenched worker with a family to feed, but cannot get work because (too old/not trained/etc) must sell everything he has just to put food on the table. And then he reads about ministers who earn 2.2 million cannot give some back to the people who voted for them? Heck, even if you put $10 ang pow to every person in the constituency, you still have enough to live comfortably for the rest of the year.
That's the sort of thing that other successful bands have written about.
Also since nobody apparently (even the musicians) seem to think that music can be a profession, few have made the effort to be professional (either in terms of playing or attitude).
You want to make it? Get a manager who's interested in promoting your music and get to know the right people: promoters, producers, media (especially), and be prepared to slog it out. Go to M'sia, Thailand, Indonesia and play there. See what that's like.
So there. My five-cents worth. By the way, any of you musos out there can give me a buzz - I am compiling a feature about local music scene and what bands/artistes out there are interesting. Drop me a PM here.