this is a bit dangerous to discuss I think, because it has a lot to do with own favourites in music and artists - a very subjective choice. I could easily do something like this but again - this belongs on my taste and it doesn't mean that this is the taste of a huge crowd...(or the whole damned world...)
good in 2004: Interlace, UV, Re_Agent, Obszön Geschöpf, Type001, FC, Little Sap Dungeon, and, and, and...
bad: all these silly copycat releases, you know this too often heard WUMPUPPY COMMCICO bands... (fill some in here...)
I also don't think we have a lack of quality here - but it is hard to find good releases. In times where every single person with a PC and soundcard can produce music it is difficult to hear and to describe differences. But this is the sign of the times with which we have to live with.