Are you sure the kind of bland and generic Tech-house is actually popular amongst the youth? Or do they simply go to clubs not because of who's/what's playing but because that's where it's happening? IMO the youth, just like 20 years ago, have vastly differentiated music tastes, but have to accept what's on offer if they want to go clubbing.
(Anecdotal evidence from number of views on Youtube indicate that melodic trance/house is the more popular alternative in this genre).
My unpopular opinion is that 80% of people visiting clubs on Ibiza have no strong connection or liking of the music being played. What we are seeing is a downdumbing to find a style or sound that doesn't put too many people off, but also satisfies enough people to fill the club. It's like McDonalds and Facebook, and most other industries that cater to the largest possible audience. They need to find a common but necessarily somewhat bland denominator to attract enough people. What we get is not many people totally satisified. Most are meh.
Quite a few clubs on Ibiza might be running on the fumes of a past era where the music was more distinct and had actual cred. Sooner or later there might be a shift in the market with smaller clubs specialising in distinct and hard-core styles.
