There was a time a couple years ago where this little county of this little state had up to 5 popular weekend Christian music 'coffee houses' operating out of local churches.
Now, we have 2.
To me, the blame for the demise of the other three is not on the popularity of any music style or anything.
Here's what happened:
Coffee house 1 - closed due to the pastor realizing that the ends weren't justifying the means. It was his hope that a popular coffee house would result in a growing congregation, especially with the lost being saved. It didn't. It ended up being nothing more than Christian entertainment with Christians who went to other churches.
Coffee house 2 - closed due to poor planning, poor promotion and a poor venue. They billed it as a 'single's ministry' yet there were more married w/ kids people coming than singles. They also held it in the gym...the WORST possible place to EVER have live music. That combined with a lack of interest to fix problems 1 and 2 killed it.
Coffee house 3 - We played at it once and it was disorganized and poorly promoted. Nice people, but...
Coffee houses 4 and 5 are still going strong. My wife and I played one last month and had one of the largest crowds that they'd ever seen. I played the other one the month prior and it, too, was packed. Their success is in their desire to keep things simple and be both a place where you'd invite your unsaved friends and provide good Christian entertainment.
My church has talked about having a monthly 'thing', but I know that our head pastor, much like the pastor of #1 above, wants to see fruit from it. The whole point of why we do what we do as a church is to see the lost become found in Christ and for them to grow into being mature disciples. He doesn't just want Christians to entertain other Christians.
I think there needs to be a place for both.