IMO musical talent is to be able to create music which I enjoy listening to.
Not to be able to play your instrument well.
I value the ability to compose music higher then the ability to be able to play it.
You couldn't have said it better.

Bob Dylan can't sing for <img src=http://forums.eyesonff.com/images/smilies/lovesmile.gif><img src=http://forums.eyesonff.com/images/smilies/lovesmile.gif><img src=http://forums.eyesonff.com/images/smilies/lovesmile.gif><img src=http://forums.eyesonff.com/images/smilies/lovesmile.gif>, yet I still consider some of his stuff artwork. It's also great to listen to.

However I do like alot of music that requires no real talent at all. I listen to punk rock all the time, and there is very little talent musically there. However, it is still good music.