Based on who you talk to, the state of indie music seems to be in a different place with every opinion. Some have happily accepted more mainstream recognition from the general public, while others have derisively seen the mainstream acceptance as pollution of the genre.
All in all, I thin that the state of indie music has managed to maintain an interesting balance. As mainstream appeal and recognition increases, so do the punishing elements from within the community. This essentially has created a self moderating system within the genre wherein a constant cycle of groups originate, go through transitions, until they make it big or flame out, then move on and leave room for the newcomers.
As indie music gathers more fans, the fans themselves serve to moderate and police the genre, boosting the groups that they like while protecting the genre by finding ways to deny the mainstream ready access to the community.
Therefore, indie music seems to be in a cycle of stability, if anything.