Eh, growing up in Southern California, it really doesn't seem like the indie thing has tremendously skyrocketed... I mean, granted, now even Bright Eyes can headline a show at the Hollywood Bowl, and the Decemberists can command the LA Philharmonic Orchestra to do their bidding, but that's really LA, and I'm a SD guy... Ska, metal, and especially hip-hop have always had larger followings down here than indie music, but now that I'm in college back up in nor cal, yeah, indie music seems a lot more prevalent in people I interact with's tastes... Weird. But, more or less, I ended up being the guy that found friends and turned them on to stuff like the Arcade Fire, Portishead, and the Smiths, so... Go figure?
Then again, up until the last 2 years or so, I wasn't really an indie fan, not at least until a friend of mine burned me a compilation of DCfC, Bright Eyes, Pixies, and The Faint, so... yeah, there is that.
Anyway, all I can say here is that the success of indie rock cannot be measured by how popular the bands are here in San Diego... I think the only mildly successful indie band to emerge from the city/area is the Album Leaf, if that counts for anything.