Not really when bands like Gotye, fun., Of Monsters & Men, and Neon Trees are some of the artists in heavy rotation. Sure, Top 40 radio still blasts shitty pop stars and horrible mainstream rap, but you'd be stupid to think the definition of a popular song today isn't broadening.
Nobody is asking Pete Wentz to do EDM...I think it's obviously even Island isn't asking for it if they have him doing an EP instead of an album. At worst, this is a vanity project.
Skrillex has, up until this point, released only EPs. EDM, even though I think it showcases a lot of things that are wrong with music today, is paving the way for how pop will be presented in the future. I believe most rising pop artists will only release EPs in the matter of a few years since a large majority of pop listeners only buy the single or a few songs from an album.
To say this is a cash grab for Pete is a little too harsh. I'd say it's a pretty easy side project for him, that's for sure. Straight up EDM isn't radio popular, but it is still massively popular amongst the 18-25 year old demo and relatively easy to garner respect in if you have the right equipment and ear for trends.