The fashion industry is promoting an ideal, not the norm. They utilize thin and attractive models because that is what appeals to the buyers of their fashion. People do not spend lots of money on clothing and accessories to look 'normal', they wish to look better than the rest, and the models represent this desire.
The problem here is not the fashion industry, it's the fact that people look at the fashion industry and think that they could be just like the people up there. There is no real "norm" for society. People are all different from one another, and we have to accept that.
No, I think that the models they show who are at a dangerous weight need to be changed to models who are actually normal, and are at a weight that our teens of today can actually reach and maintain without starving themselves and causing a lot of health problems for themselves.
No, the fashion industry should not continue to utilize models that do not match up to the norms of society, because it hard to know what the clothes will look like on me, because they are modeled by people who don't look like actual people. This is to say nothing of the example of body image that this sets for young girls.
The fashion industry works against its own best interests by not advertising to the majority of people the buy products. Furthermore, it encourages unhealthy images of what people should look like and in some cases causes people to develop eating disorders or other unhealthy habits as well as self esteem issues.