I'm in line with Maria and Jon in that with the publishing world in flux, indie and traditional represent two different things and can coexist with the same author. As I was reminded at the recent AWP creative writing conference in Denver, the big publishing companies are owned by conglomerates and hedge funds, and the bottom line is everything, with Bookscan counting books sold. The big publishers are not out to groom writers, and if the first three books of a new author flop, they don't tell themselves, "Hang in there and we'll have a Hemingway." For big publishers, genre fiction does particularly well. Literary fiction, less so.
Thus, authors who write well but don't have a huge following are finding that indie publishing can be a viable option. If you have a manuscript worthy of a big audience, particularly if you have a romance, thriller, or mystery, then getting an agent may be an obvious pursuit. Writing a great query letter and sending a fabulous sample works. It worked for me. I like my New York agent a lot. Before him, I knew my collections of literary short fiction were not about big numbers, so I went the indie route and have been quite happy, winning awards and getting even some big reviews. It hasn't made me want to leave my agent. Rather, I'm writing my first mystery. It should be something he can sell.
At the AWP Conference, author Michael Chabon, who won the Pulitzer Prize in 2001 for
Kavalier & Clay, gave the keynote address, and he spoke at length about have a broader definition of genre fiction. To read more about his speech, go here:
http://www.redroom.com/blog/christopher-meeks/for-the-benjamins-part-two-awp