Well, I think it was Rick that said as long as the songs go along with the plot, that's the most important thing, and I think he's right. I see the potential for some of these songs (even the ones I don't like) to work really well in the proper situation here.
Having said that, it would be nice to see developers approaching music liscencing with a more artistic approach in mind. This game may not sell that well, but maybe it could sell even better on the strength of a really interesting soundtrack.
What about a Nintendogs-like setup where you start out with all Rap/Rock/Dance music, and you can unlock songs from the other genres and use them in-game as you wish? That's too expensive for a game that's not guaranteed to be a hit, I guess.