The problem isn't the contestants but the music industry.
The industry has become so risk averse that it wants to create an image before it even contemplates signing an act.
Kylie only got a record deal because she was on Neighbours, as did the whole of the Neighbours cast of the time, Michaela Strachan, Zig & Zag, Mr Blobby, Sam Fox etc
Move forward 25 years and the pre-packaged formulaic dross of the 1980s is replaced by the pre-packaged formulaic dross of One Direction, Little Mix, Ella H, Sam Bailey.
The only difference is that major labels use the tv show to create the image so that they have complete control of the singers. This means that they will only hype acts that will tow the line. As soon as they start to push for creativity, the record labels will drop them.
But, the music industry has also blocked most other avenues to media exposure. Where are the tv shows to launch independent music? There aren't any. BBC Introducing is a joke hidden away in the middle of nowhere. The only way is for artists to do the pub circuit for little or no money.
This means if an independent artists wants to expand their profile the most obvious way to do this is through TXF.
They can always then leave the show and try to forge their own career path in their own right. However, the show has become aware of this and more likely to put through a cheese-infested boy-group member than a talented singer song-writer.
Even worse, once a talented singer-songwriter does go on the show, the whole of their career is likely to be derided due to the X Factor tag no matter how small a part it was of their career.