Being a typical westerner, most of the bands I listen to are either from North America or the UK. Most of my favourite artists are from the UK, although I think that's unrelated to the fact I'm British myself... seeing as I only listen to what I find on the internet rather than the radio or TV.
Anyway, my favourite UK artists are: Radiohead, Jesu, Elbow, Joy Division, Massive Attack, David Bowie, The Cure, Pink Floyd, Porcupine Tree, Muse, The Smiths, Black Sabbath, Genesis and Yes.
I think Britain had better artists in the decades before 2000; as for the 00's, I feel that the USA has definitely been producing much more good quality music.