His use of contemporary music has swung both ways. In Lost Highway, the use of NIN and M. Manson certainly provided short term gain and probably drew a lot of people in to see what he likely knew to be one of his least accessible works. Problem was in how it stuck the film in a time capsule. Simply doesn't age well.
Yet in Wild at Heart, the use of the band Powermad was done masterfully (imo). I can watch that over and over and the presence of an old school thrash metal band still enhances it favorably, even though that genre had aged very badly within a couple short years of the film's release.
Eraserhead is one of the finest slices of pure, unapologetic surrealism on film.