I'm still not wowed by the music from 2004, but maybe that's because 2003 was such a rich year, and 2005 had a pretty decent crop as well. Still, despite my concerns, I did have to cull from the list several albums I enjoy. My favorite at this point is Shake the Sheets, by Ted Leo + The Pharmacists, but otherwise, I'm just keeping them in alphabetical order by artist.
Devendra Banhart -- Rejoicing in the Hands
The Beta Band -- Heroes to Zeros
Sarah Harmer -- All of Our Names
Ted Leo + The Pharmacists -- Shake the Sheets
Anaïs Mitchell -- Hymns for the Exiled
Old 97s -- Drag It Up
Richard Shindell -- Vuelta
Rogue Wave -- Out of the Shadows
Various Artists -- Public Displays of Affection: The Sounds of Independent Radio
Wilco -- A Ghost is Born
The Beta Band -- Heroes to Zeros
Sarah Harmer -- All of Our Names
Ted Leo + The Pharmacists -- Shake the Sheets
Anaïs Mitchell -- Hymns for the Exiled
Old 97s -- Drag It Up
Richard Shindell -- Vuelta
Rogue Wave -- Out of the Shadows
Various Artists -- Public Displays of Affection: The Sounds of Independent Radio
Wilco -- A Ghost is Born
A couple of releases deserve mention for having a great song, but don't do it for me as albums. Rilo Kiley had the poppy "It's a Hit" from More Adventurous, that I really enjoyed. The Magnetic Fields, who released 69 Love Songs in 1999, had a love song better than any of those with "It's Only Time," off I. I also enjoyed numerous tunes from both Arcade Fire's Funeral and Modest Mouse's Good News for People Who Love Bad News, but each became somewhat monotonous when playing the whole album.