well, I see this topic has gone off on a tangent.....however one I enjoy discussing, so I'll keep going, and I hope others keep up as well.
As far as my lifetime goes, first it was punk rock, then alternative, then indie.
I don't think the indie rock thing has gotten as big...or will ever get as big as the slickly packaged punk rock and alternative bands got. At least on a top 40 level.......but then again, I can't even think of the last time I actually checked to see what the top 40 was. So I could be wrong.
But bands that I would consider "indie rock", that are on major labels and are selling out huge arena type shows are The Flaming Lips, Modest Mouse, Death Cab for Cutie, Bright Eyes, Built to Spill, and many others I'm forgetting at the moment.
One thing all these bands have in common......they hold on to their artistic freedoms when signing major label record deals, shooting videos, making records, their "image", etc.
I'm from Seattle, so what I see most is that Modest Mouse and Built to spill have been huge in my book for over a decade now. They've been selling out massive shows this whole time, making great records, touring the states and over seas, and constantly giving me something refreshing to listen to. But my guess (and I'm friends with a few of these people), is that they have kids now, families, they want to buy a house, etc.
They could have made the move to MTV along time ago. But had no need, what would be the benefit. I mean, great, sign a big record deal, get a butt-load of cash, and some greasy dinasour telling you that you have to have a ballad on your record.
It's really no different then punk, as far as the politics go. It's just called indie rock now. And instead of loud in your face angsty music, it's a little more mellow, usually involves more then the typical guitar, bass, drums, vocals.
If you listened to the lyrics in alot of modest mouse songs, you'll find the same basic message you heard in a circle jerks song. I think it's a little more cleverly stated these days though.
There's a big, BIG difference between Sum41 or Good Charlette (ala mainstream punk rock) and Modest Mouse or The Flaming Lips (ala mainstream indie rock).