Today, game sound engeneers have the ability to do almost anything they chose in games audio department. However, I am a strong believer that gaming music has been going down the shithole ever since this trend started. But thats another topic...

A lot of the issues I have with game music is with licencing of known songs by establised (or indie) bands. It was cool when Crazy Taxi did it...and some sports games were doing it becuase it was showing a connection between entertainment mediums. However, lately I think games with licenced soundtracks suffer from having completely forgetable music, hence being less memorable overall.

Here is a test...who here remembers the theme song of 20 year old NES game, Blades of Steel when they hit the ice? Now who remembers any song in NHL 2006?

For me, yes and no. While I'd take an original soundtrack anytime over a licensed one, I played a lot of games with great licensed soundtracks. I can recall a lot of Tony Hawk 3 soundtrack, FIFA games usually have great soundtracks, GTA has always featured a fantastic soundtrack (I remember the entire K-DST tracklist from San Andreas). Let's not even talk about Guitar Hero. Of course, you also have games with bad licensed soundtrack (Need For Speed Most Wanted).
For me it's not relative to if the soundtrack is licensed or not but to the ability of the studio to put up good songs

I agree that music can be good...but I have a hard time remembering these songs and associating them with videogames.

Maybe I'm just getting old...but somehow I don't think that is. Braid and Castle crashers were 2 recent games with amazing original music...and I remember both quite well. Yet I wouldn't be able to tell you of a single song that is on GTA4 radio...yet I do remember the GTA4 opening loading screen tune as it was quite good.

i liked songs in Saints Row and you had the MP3 player so you could go buy the music and walk around and listen to it outside of a car.

As said before, if they select good songs I am happy. I do not spend much time finding music, I just listen to the stuff I have, so generally games find music that I have never heard of, so I dont think the licensing is a bad thing for most games, though of course you would expect some original music, especially in the more epic RPGs