I reckon this nepotism is just part of our culture these days. Its come through from long ago. But, I dont reckon that it is behind everyones intent. I find it is hard to tell the difference and if it is a bad thing or a good thing. As Centurian stated that sometimes nepotism can be seen as lending a hand to an artist that shows talent and determination yet needs the support in order to step-up to the next level. Only the guiding hand knows if this is worth it and necessary for the whole scheme of things - determined by the goals and ideals of the guiding hand.
Its really hard to say if nepotism is good or bad at the start. Only the end results determine whether the leg-up was a good idea or not. Obviously, blatant short sighted promoting is a bad thing and once again the results speak for themselves.
At the end of the day if you retain your integrity and honesty nepotism, things will work out good for everyone involved who share that same level of commitment and dedication. If you want to step into the realm of corruption and greed nepotism, then you will always have enemies to work against and a future that is always on your doorstep threatening to leave.