I think Indie suffers because there is very little good, catchy new music in their genre right now. It's a pretty limited genre too: new alternative that is intelligent. A few years ago there was Modest Mouse and Franz Ferdinand, but now precious little. I'm a big fan of Indie and even I find myself shrugging lately at the new music they play, and then changing the channel.
KROQ is suffering for the same reason: very little good new music out.
98.7 probably doesn't pull from Indie too much. It's pretty much old KROQ stuff on there, and slanted toward the meathead/fratboy Red Hot Chili Pepper / Linkin Park type crowd.
And of course all radio suffers because people of that age are listening to ipods, web broadcasts, XM, and this that and the other. While Indie's been around that trend has really intensified.
It's still a great station - really the only good station in town other than maybe KUSC for classical fans and KCSN for eclectic tastes. You have to be an active listener, though, rather than a casual guy punching it up in the car.
I sometimes listen to it just so that I don't regret not having listened to it when it eventually vanishes.
PS - As for dance......I think that is really outdated at this point.