Bill - you shouldn't confuse GPN w/Blues and Lasers...they're two separate bands/companies/budgets.  And for arguments sake let's examine GPN (the more "successful" band):

3 albums?  Yeah, 2 of which they paid for/self produced.  Record companies make an investment, they're not benefactors.  In other words, what they put in, they expect to get back (and then some).  I'm sure TIS was expensive to make.  As much as we all love them, GPN's album success is debatable (including TIS).   If a few semi-popular songs ("hits" as you've described) would have them rolling in dough, then the music industry would be a cinch.  I don't believe TV appearances are necessarily even paying gigs.  And lastly, touring is EXTREMELY expensive.  The bus only exists b/c they got a sponsor.  

All of this is what makes the industry so frustrating.  Often the best artists aren't compensated fairly or adequately (as KC pointed out).  Then you have garbage on the radio making  zillions of dollars.   

Closing on a  happy/positive note - the show tonight at the Monkey was more successful then they had hoped!  Yay!