Bombmaniac, you’re totally leaving out frum chick lit, the four friends books. (Always four friends, maybe symbolizing the four directions people head in.)
There are some good writers. Meir Uri Gottesman, M. Bassra (Sun Inside Rain), and if you can handle the early translations, Marcus Lehman, for starters.
There are some good books out there too, like Dual Discovery, The Stars Will Guide You (an early teen book, great reading), Shortchanged (and anything by that author) and more.
Yes, it’s likely you’re going to come across some less than excellent writing, not to mention not enough to keep you busy, so you may want to augment your reading with secular stuff, but come on, unless you’re some intellectual you’ll have your own guilty pleasures from the public library, may as well get in some Judaica while reading too.
And maybe, just maybe, someone out there will be moved to build a better literary mousetrap. We’re waiting.