Edge,
First of all, you can't make a complete separation between spiritual and physical with regard to holiness. I don't want to go into all the philosophical and theological arguments surrounding the issue, so I'll try and explain it simply.
There are rather obviously "physical" things which are not acceptable for Christians to engage in as a matter of holiness. We can't simply claim to be "spiritually" holy and then just do whatever we want. We have to draw the line somewhere. The question is where do we draw it. Do we draw it wherever it is convenient for us? Or do we draw it where God tells us to, which will certainly not be convenient to our flesh?
What is my rationale for condemning POD as a worldly band? Ummm, have you seen their website?? Have you read "The Story" section? Is there one single mention of Jesus anywhere on there?
Quite simply, they have copied the world in almost every conceivable way. They have copied the style of the world, the speech of the world, the dress of the world, the hype of the world, etc. etc. Why are they so successful? Why are they so accepted by the mainstream, secular music world (MTV, for example)? Because they are almost indistinguishable from mainstream, secular, non-Christian bands. You want Scripture? Try this.
John 15:18-19 "If the world hates you, keep in mind that it hated me first. (19) If you belonged to the world, it would love you as its own. As it is, you do not belong to the world, but I have chosen you out of the world. That is why the world hates you.
Does the world "hate" POD? Of course not. The world loves POD - they're "explosively popular!" And you wonder why they fit in the "unholy" category? Because they are "unholy" by the very definition of the word. They are not separate. They are not devoted to God. If they were, they would certainly not be as popular as they are now. They'd be about as popular as Jesus - whom most people rejected and hated and tried to kill.
Finally, I don't remember ever equivocating "the world" with "anything not traditionally associated with dead, mainstream, cultural American Christianity." Perhaps you have got mixed up with someone else's post.
love in Christ,
Malcolm