^^ Absolutely agree with your last line. Can't they create a new genre of the talented idols? I think they can.
I don't think they would be average artists if they are considered to be artists though. They are never going to be musicians, but I could consider them very good artists. For me good artists perform well, but good musicians know the in and out of their music. They are more artist-like than Momoclo imo though.
And I do not worry too much about ℃-ute chasing away unrefined talented young girls. Tsunku always look for those kind of girls for MM, and it took ℃-ute 10 years to arrive at this level.