I think a lot more of them can hold a tune than you give them credit for, it's just that pitch adjustment in the studio is stretching them beyond their natural vocal range, so when they try to reproduce it live, quality suffers. Unless you're specifically talking about artists like T-Pain, but their whole thing is that autotune is their vocal instrument.
That was definitely the way he marketed himself. He knew exactly what he was doing and is a great example of marketing vs music. T-Pain knows music, and is a fantastic musician, check out his NPR gig with just a keyboardist and his natural voice https://www.youtube.com/watch?v=CIjXUg1s5gc
I think it's going to be better for it in the long run. I know it's hard for bands to make ends meet off album sales now, but on the other hand it doesn't cost 100k to produce and distribute anymore. Some people don't even have to spend a dime, it can be home produced and still have an audience.
But that's beside the point here. My biggest peeve is that there are plenty of "Top 40" "artists" that can barely hold a note. And it's been that way since the 90s, thanks to the magic of Auto-Tune. Anyone with a marketing budget and access to an industry insider who can make the right moves can just start dropping albums and buying hit slots.
What's changed is that now, anyone with a YouTube or Twitch channel can just start publishing music. Create a Soundcloud and you can get rotation in any one of a dozen DJs podcasts. TuneCore will put your stuff in the Music Stores. Spotify and Pandora are a little harder to break into, but not much. Setup a Twitter account and talk directly to your fans without needing a publicist.
A whole industry's worth of Kingmakers have been turned into online services, and that's really changing the landscape of the industry.