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Well, from a certain point-of-view, the problem is that you're potentially perpetuating stupidity and mediocrity. I think this is a different issue though - there's nothing wrong with making money from music - i just think that it can and often does lead to shit when it is a NECESSITY to make music, rather than something you do when you are feeling it.
I dunno man - aren't there plenty of people out there doing a good job of work they hate? Even creative work?
What about someone who likes techno, but hates the process of producing it, and does so anyway? What about someone who's a good producer, but hates the result, but knows that others like it?
It seems to me that people are very fast to couple the act of creation and the reasons for it with the result. Sure it's a huge advantage if you're into what you're making, but I don't think stupidity and mediocrity are necessarily the result if you're not, either...nor if you're just doing it for the money. Doing a good job regardless of those factors has a name; "professionalism".