Hate to say it, but that is probably the best thing for those guys. I don't fault them. I once played in a cover band, but the point was to eventually do originals, and we did.
Most professional musicians are not doing what we see. My cousin John played in multiple bands--The Blasters, Mike Eldred Trio, a band with one of the former Black Crowes guitarists, and one more--just to make a living. I believe his father passed away and left the family lots of money so he plays in fewer bands now.
Point being that once you get one level below that, the way to make money is to be in a top 40 band like this. If you can get on the wedding circuit and play corporate events and parties, you'll do okay. When another cousin of mine got married, she used a live band that Oprah had used at some events, and they were great. They could play everything from Sinatra to the Stones to modern pop and everything in betweeen. Multiple instruments and vocalists. You can charge a ton of money on that circuit too.
