Well, let me state the obvious here, the problem I have with the grammies is that it recognizes artists based on sale statistics of their latest albums. However, that is not the only issue - recognition is also very biased and it is often based on the level of a buzz created by a band. All in all, industry recognition is not based on the quality of the band or quality of their latest album - I think if anyone is to judge it is the fans rather than people who have no interest in the band.
In a sense, recognition of good music is a very subjective exercise anyway. So it doesn't really matter that the "industry" says something is good. Equally it doesn't matter if a million people like an album if I don't - that's why I don't think the grammies are in any way relevant.
If any, the only relevance is promotional. It is but another way to get a band's name to a larger audience. However, even on that level the only names being promoted are those like Katy Perry and Lady Gaga (and the like). Bands like Megadeth or any of the other metal acts nominated are never shown on tv or in the papers anyway. The general public doesn't care about those bands - the general public doesn't care about music to begin with... all they really care about is the size of someone's tits, the latest scandals and gossip. Music is secondary for the type of audience that watches the Grammies.
These are imo the reasons why an award show like the Grammies means nothing.