Many years ago I was in originals bands who were signed to labels and management. That was another world, but in the years since I've worked with songwriters where the writing was anywhere between great and woeful! Funnily enough, the worse the writer the less willing they were to listen to ideas. So I have a pretty jaundiced view of the semi-pro "originals" band as a genre. If you are going down the originals route, which is a valid decision, you have to develop a very strong quality filter. It's really not a good thing to be the William McGonigal of song writing. Just being an original song is not enough. It still has to be a good one.
A good covers band will play what the audience wants. A better covers band will make better song choices. You have a larger, more varied pool of songs to chose from and you can pick songs that are fresh, audience friendly and excellent songs at the same time. Audiences usually just want what they know but you can broaden their horizons if you do it well enough.