Post
Region: South Pacific
I think the debate about giving the Nobel Prize for Literature to a musician centres around the extent to which the words rely on the music. The fact that they're set to music means that (in most cases, at least) they take on a completely different structure and form - e.g. often more repetition, rhyming in a way that might seem overdone in a poem - so that if you took the words away from the music, they wouldn't be half as effective.
I think awarding literary prizes for a work which is both poetic and musical is perfectly fine. I'd consider it a separate form from poetry, but still a valid literary form.
I have to admit I really don't know any hip hop, would you mind linking an example of what you were thinking of?