The weird thing about this “flop” period is that Kylie never did go “all indie”. I only remember Kylie being dubbed as "indie" for a very short period of time. Probably for less than a year and really only after she worked with James Dean Bradfield. All she did was release an indie sounding single in advance of an album which wasn’t all that indie, to be honest. People might have thought it was going to be an indie album and might remember it as such, but it really wasn’t (and isn’t).
I do remember a quote from Keith Blackhurst (I think) after he signed her and he said something along the lines of... "most people see Kylie as a trashy disco singer... we see her as a radical dance diva". After she parted company with PWL and right up until she released "Some Kind Of Bliss", I believe Kylie was very much regarded as a dance music artist. She was on a dance label, after all, and her main collaborators were dance music producers, with the odd foray into R&B I suppose. (With hindsight, "Where The Wild Roses Grow" could perhaps be seen as an "indie" sounding release but I don’t really remember that phrase being used at the time and, let's face it, there was no evidence to suggest it was anything other than a one-off.)
Even the Manics produced tracks on Impossible Princess were a bit of an afterthought, tagged on to the tracklisting at the last minute That album started its life as very much an edgy, alternative, dance album. Tracks like "Drunk" and “Cowboy Style” and "Say Hey" kinda prove that. The indie sounding songs do stick out a bit like a sore thumb when you play that album nowadays.
I am pretty certain that her “Kylie Minogue” album sold more and charted higher than “Let’s Get To It” (which didn’t even go Top 10), so it’s not as though she consistently “flopped” throughout her time with Deconstruction, compared to her time with PWL. It’s just that Deconstruction weren’t able to match her early popularity, which had already begun to fade during her time with PWL, instead choosing to favour something which Kylie craved even more so, which was credibility.
Did Kylie flop in 1997/1998 because she made music her fans didn’t want her to? I would argue no. I do think that she had simply less fans during that period, for what could be any number of reasons. But I do remember the critics suddenly loved her when they once despised her – and on the fan forums at the time most of her fans were incredibly excited about the prospect of that album and were just as in love with her as always.
My theory is that Kylie has been most successful when she’s been creating a sound that is “cool” and totally on trend musically or, indeed, ahead of trend. The “Rhythm Of Love” singles were all amazing because she’d moved markedly from bubblegum pop to the fringes of early 90s acid house – and that was a sound which was selling by the bucketload at the time, long before the market for that kinda music imploded on itself. “Confide In Me” is seen as a milestone probably because it was a huge leap forward in credibility for her, plus it sounded really interesting and new. “Spinning Around” came along at exactly the right moment – when the world had largely turned its back on indie sounding music, in favour of bright meaningless pop! As for “Can’t Get You Out Of My Head”, I firmly believe it was ahead of its time and set trends – which is why it rightly became as huge as it did.