It all depends on what the people in the band are aiming for. I've been in gigging bands, I've been in studio-only bands. If you want plenty of gigs around here, then you're going to have to play the same type of tired old covers that everyone else is playing (unless you are in your teens and got a college following). That can be fun, but the 'fun' element wears off real quick when you're a bit older.
I've been in plenty of writing/studio only bands, and that's more fun because the band can follow their own direction without having to accomodate the level of populism required to get a gig schedule. To be honest, some of the stuff myself and my friends have written would have very little appeal to the average pub crowd, and we're all too old to be considered hip, but we enjoy the whole creative process (and the social) immensely. I guess it boils down to whether everyone in the band is getting what they want out of it. And yes... fun!! :-)