Reading through all of the posts and the responses, I would offer up this: Do what the successful people do. Prime example is Lindsay Sterling. She is a musician that is wildly successful. This is in part because she is just a little bit different from the pack and she promotes the crap out of herself on every possible front imagineable. She also just happens to be LDS. She isn't afraid to state that and has on numerous occacions but this is not why she performs and is not the totality of the market she is trying to reach. In the music world, you can't allow yourself to be labeled if you plan to have wide reaching influence. If you go out now with the "Mormon" title, you will forever be that. Besides, I have listened to a lot of LDS artists and little of that content is indie rock. You need to sell your craft like you want it to be purchased and as you have already experienced, it won't fly off the shelves unless you are willing to get out there and PUSH it off the shelves. That is really a good rule for just about anything you want in life. Nothing comes free that is worth having or will last for long.
BTW... I don't play an instrument all that well but I play a MEAN iPod!!! Sounds great!