Looks like you've got a good balance there.
I used to play in cover bands years ago, some run of the mill, some more grungey. I got bored. For me it's the jamming and writing which makes me happy. Yes, it's enjoyable to get people up and dancing but I could run a disco and get even more up. I'm not sure I could get back into doing covers... maybe if there really was nothing else happening. Never say never.
There's nowt wrong with any of it. As long as people are doing their thang and enjoying it, then all is good IMO.