How does one define the term "music industry"? I think that's important to know.

TL;DR: Yeah, I pretty much agree that connections are a speed boost to skill, but with the right connections the level of skill required can be greatly reduced. Also, sorry for the long comment, but you really got me thinking on this one, haha.

I think that it's kind of impossible to say which is truly more important, I think each case is unique in that regard. For example, Willis Earl Beal is an absolutely phenomenal singer and songwriter but it's taken him years to get noticed, whereas somebody like Rebecca Black pops up virtually out of nowhere because her parents hire a self described "music factory" (which will obviously come with it's own connections) to produce a cheesy, generic pop song with accompanying video. Now I'm sure Rebecca Black has some skills as a singer but with a decent production team behind them pretty much anyone could give her a run for her money, and in that sense I consider her case to have been one where connections have played a larger role than skill/talent. Willis Earl Beal on the other hand has gained success mostly from his talent.

Another example where skill/talent wins out is the case of Benjamin Clementine. He was a homeless busker in Paris after leaving his home in London. It wasn't until four years of busking that an agent heard him play as he (the agent) was on his way home from a gig, they arranged a meeting for the next day and the rest, as they say, is history.

One last example that shows both skills and connections are important (or maybe symbiotic) is John Frusciante's first solo album which is one of my favorite albums. This album sounds like complete garbage (to an average music fan) compared to the music he had been making with the Red Hot Chili Peppers. What's interesting is that while Frusciante has incredible skill, even on his first solo album, I still think the only reason it was released on Rick Rubin's American Recordings label is because he was "former Red Hot Chili Peppers guitarist, John Frusciante", if he had been just some dude making these recordings in his bedroom we'd probably never have heard them. But, to bring us full circle, it was his skill/talent that initiated the whole process by allowing him to become RHCP's guitarist in the first place... But then, maybe he knew someone who knew someone who needed a guitarist and it really was just his connections that allowed him to release Niandra LaDes and Usually Just a T-Shirt.

Jesus Christ... I hate myself for writing such long comments.