I agree with the thought behind *this (click here) article but its not about quitting if you make bad films, its about learning to make better films and knowing where you fall in the spectrum. If the films you make are mediocre, put them in festivals and get feedback from your peers, don't go looking for distribution.
So here's 5 questions to ask yourself to know if you're ready for distribution:
1. Do you have all key contracts from crew cast?
2. Do you have all sync and master use licenses for ALL music used in your film?
3. Is your film/video properly exposed? (Do you have very dark or very bright scenes? 3b. Is it properly color balanced?)
4. Piggy-Backing on the last question, has your film gone through color grading/correction? (Hint: What comes right out of your camera is not ready for distribution even if you're using an Epic or BMCC, especially BMCC)
5. Does your film sound professional? (No camera audio please, and for god's sake take time on sounds design.
We don't need to stop making indie films, we ned to stop trying to get them distributed. Distributors will take your crap, spend $2,000 (of your money) on artwork and trick the consumer into thinking your crap is good. You can fool each person once, but then they start to say "all of this person's films suck". So what happens when you actually make a film worthy of commercial distribution? Yep, no one wants it. So take your time, get good at your craft before you try to make a quick buck and by the way, that quick buck ain't so quick (we'll talk about that later).