True, True.
You seem to forget that Utada herself is a huge fan of American music, including rap, rock, and everything in between:
Aaliyah, At the Drive-in, Bela Bartok, Bj?rk, Blink182, Blue Man Group, Bon Jovi, Brandy, Cocteau Twins, Craig David, Dr. Dre, Edith Piaf, Elvis Presley, Enigma, Erykah Badu, Freddie Mercury, Garbage, Guns N' Roses, Guru, Incubus, Janet Jackson, Jeff Buckley, Jimi Hendrix, Joe, Kate Bush, Lauryn Hill, Led Zeppelin, Madonna, Mary J. Blige, Maxwell (musician), Metallica, Minnie Riperton, Miles Davis, Missy Elliot, Mozart, Nine Inch Nails, No Doubt, Pearl Jam, Prince, Queen, Radiohead, Sada Masashi, Slash, Sting, The Beatles, The Cure, The Eagles, The Police, TLC, Trent Reznor, U2, and Velvet Revolver
according to her Jpop Stop! page.

If America, the largest music business in the world, is a wasteland for untalented artists, then so is Japan. After all, Utada is a rarity in a business dominated by idol girls and pretty boys.

All of this comes down to: Just because something is popular doesn't make it good, and just because something is good doesn't mean it is popular.

All in all, singer-songwriters need something to immediately catch the public's eye, like lady Gaga, or else they'll just keep on producing music without anyone noticing. After all, some amazing singer-songwriters are content with just releasing music and playing for the small group of people who are their devoted fans, like Tori Amos.

PS: I don't think Lady Gaga is as artificial as many others think
PPS: @Ultra_Red
Tori Amos