La La Land is exactly the type of film that plays to the industry people voting in these Awards. At the very least, it will be one of this year's front runners.
Also, what musicals have been snubbed in the past couple of decades? Chicago won. Les Miserables got more recognition than I thought it deserved. Moulin Rouge lost to A Beautiful Mind, but I'd argue that Fellowship of the Ring was the bigger snub (which is probably why the Academy went all out on the weaker Return of the King). I suppose that you could argue that Dreamgirls was worthy of at least a best picture nomination. I don't really think the rest of the more notable post-2000 musicals were really worthy of consideration.
It's this year's Artist!