You are so totally right. I've been playing this scene for a year now. The only venues that my band (metal) can seem to get booked at are Just Bill's and the Creepy Crawl. The Creepy Crawl used to be awesome, but now they've changed locations and it's basically a dirty hole-in-the-wall of a poorly designed bar. Either way, if you don't sell tickets, you don't play. If you don't sell enough tickets, you can't make any money.
The beauty of the system is that when you're trying to sell tickets to a show with your band and a bunch of nobodies, you can generally only find support from your friends. Then when you get to the gig, you've got five bands who have all brought their friends. One by one, after bands finish, the crowd thins out. If you're playing last, you only play to your friends. Seriously, you would save money by just inviting friends over and playing in your yard.
The only exception to this rule that I've found lately is The Bluebird. I actually caught the most varied show I've seen in a while last month. It was Target Market (indie rock), Lye by Mistake (stoner metal), Bring Back the Guns (indie rock) and So Many Dynamos (indie dance pop?). Amazing show at an awesome venue.
Between sets, they were frying up batches of home fries for the audience. I sat on a couch, listened to the Weakerthans' Reconstruction Site over the P.A., drank beer, ate fries and waited for the next awesome set.