Id give it about a five. It could definitely be better, but I think it could be a lot worse.
First of all, the independent game has to be thriving if a cat like Kobe Soz can release his own album. Its not that hard to find a producer and a rapper, get a studio for a few hours, and put out a ghetto ass release. Of course, bad indi releases like Kobe Soz water down the game, but the fact that anyone with a few G's can put out a record these days is unbelievable.
Im guessing your rating is based on the fact that a lot of chain stores have shut down in the past year or so, ie Sam Goody, some Tower Records, and the Wherehouse, but to me that just means that they were taking advantage of their customers (17.99 for a new cd) and now independent rap has found OTHER outlets to bring their shit to the table (ie artist websites, Sicc Shop, other online sources) as well as building up independents like Frisco Street Show. These new sources are making it easier for indies to get their products to the fans A LOT cheaper than before. I think artists distributing their product and internet distributors will be the wave of the future for independent music.
As far as folks MAKING money, it takes time to make money. A lot of folks are in and out of the game because they cant hang. Independent artists who have been around a while (C-Bo WCM, Yukmouth Rapalot, San Quinn Done Deal) seem to not be selling as well as they should but still do fine.