Yes but... this TrekCore interview remark leads me to think that appealing to a younger demographic via new pop music was only a small part of the deal.
Seems to me that directly promoting whatever "hot young bands" was the main factor, what with the album card appearing at the eps end and all that.
The big thing seems to be having these (again) "hot young bands" appear directly, performing their songs, in the eps, as part of a promotion deal.
Having the crew only listening to their music, or playing their music, probably wouldn't be enough. Sounds like the bands had to show up playing on-screen somehow.
Maybe that's not the case, but that's my read of the interview. It needn't be that way. I remember the eps promos used pop music, a way could have been found to use more of it without directly including the "HOT YOUNG BANDS" in the ship's restaurant.
Eh, there's several ways it could have been done.
As previously mentioned, it could be a broadcast they are watching, or they could slide them into holoprograms, or as just mentioned, have the band members guest sar as Star Fleet personnel competing in a talent contest.
Now, of course, none of these ideas could be used every week, and working a band in every week, would likely be a disster anyways, but, no reason they couldn't find ways to do it a few times a season.
Another possibility might be to have different bands sing the opening theme.