Maybe where you were, but here in the UK in '96/'97 electronica/dance culture was the dog's bollocks, while brit pop and other retro nonsense such as grunge and post-grunge were thankfully on life support.
So do you wanna explain how Oasis was the world's biggest selling act in 1996? My point is just that U2, as a guitar-rock band, seemed a bit past-it for the first time in 1997 (at least, from my perspective).
But actually you're right -- Pop was much more warmly embraced in Europe than in N. America.