It seems like most Indie developers are hiring music contractors. I've had pretty steady work since starting, but only by lowering my rate to just barely pay the bills. It can be frightening at times, but its living the dream.

Its true that most of them seem reluctant to spend money on music. I think most developers are more visually inclined, either having been the type to draw dragons and robots in their notebook margins, or fans of games which never had good music anyway. There is a rich history of terrible game music, and a small history of great game music. History has proven that a great game does not need great music. However, in the past, the market was a smaller, mainly console driven market. Video games are less of a curiosity and more mainstream, so it is time to ramp up music quality, even in smaller titles, if there is any hope of competition with established developers.