How do you figure it was out of place? 

NIN performance fits great in my opinion...especially the verse 'spread the infection where you spill your seed' 

Many people seemed to be disturbed by this performance and I think this was intentionally meant to be an 'out of place' performance.  Also, this is partially because this song was a response to the end of the last episode(an episode widely adored because of its easy going nature and a lot of old-style twin peaks content, but there is trouble in paradise, the bartender, laura palmer).  In the last episode there was no song, no 'bing'/impact, there definitely is a body, and it is the old idyllic twin peaks characters(briggs being a good example)(and that episode 7 which gave them alot of time) which are dead; but instead the 'bartender' doing buisness with many new 'Lauras', then the townspeople 'sleepwalking', apparently never having solved this problem.

This song could be seen as a wakeup call to the sleepwalkers, she, Laura, is gone: as if the giant(the white side) saw the atomic blast and BOB, but reacted not by solving the problem and intervening,  but by sleeping, levitating and dreaming of laura as a gold atom, tricking itself into ignoring the problem(as cooper was tricked by the gold atom, laura), as if laura will guarantee that bob will go away.  Dreaming as if this atom of laura(the girl represented by the song cut short by the woodsmen) is a solid reality, but this dream dropped dead with those old people listening to old songs before the blast-woodsmen(torn apart by the nuclear blast which splits/fuses atoms/reality).  The song forces confrontation with the dark truth of twin peaks, what all are trying to avoid when they ask for old twin peaks back, it would never work today? Even the giant and agent cooper have hidden from this for 25 years, and I think the ??????? is meant to indicate that he has awoken, lost laura, and does not know of his role today, much like dougie/cooper.  The giant and the woman with him, along with 'white' characters like James, Shelly, the pie eating woman etc. all pretend as if everything is alright, but the truth is they are complicit in Laura's destruction, as is Laura herself, by not facing up to the problem, and even turning an approving blind eye to the problem, or participating in it themselves, ignoring her pleas for help and forcing on her the 'prom queen'(while others forced other things, and she is definitely very guilty here, to the point of extreme enjoyment and affirmation in revenge) so they could sleep easy to the point they watched her die and never brought anyone to justice.

  The song talking about the digging of nails into the dirt, spreading the infection with your seed(as if it is the logic of Laura(her sadistic-masochistic revenge), Mr. C and the woodsmen, going to the extremes, repetitive cycle of self destruction etc. and continuing on in a self destructive manner as if you will get a different result) and could easily be seen as an indictment of a society not intervening in nature-law(and intervening is required when we have the capability to destroy the world, and wild people like Mr. C and Laura are experimenting wildly with this power, nuclear tests, billionaire uncontrolled surveillance, terrorism laws which suspend all freedom and right, etc.). 

    Rather, people are repetitively sleepwalking while the 'seed' of the laura/leland/Mr. C of twin peaks flourishes, slowly creeping over more and more of reality, with a silent nod of approval.  Truth is that 'white'/laura, etc. are in on the evil and they have force to back them up in BOB woodsmen, white is extreme in its willful ignorance and participation with and enjoyment in the crimes. White provides teh surface for bob, allows him to have cover, flourish and to be ignored and not dealt with. White in the surface of the eyes(surface of the innocent idylic community), black inside, the repetitive cycle of 'time and time again, BOB BOB BOB BOB' that the giant created in his sleep, dreaming of a laura who is gone, dead, ripped apart by a society approved by the giant and the fatwoman so they could go on dreaming, eating pies and feeling self satisfied, missing her cries for help, and its over 25 years too late to save the situation.....

The removal of BOB from coop to the backstory of the creation of BOB was a nice flowing narrative.  I just felt thematically, narratively, and artistically it didn't fit into the flow of this beautiful episode.

The NIN performance just cut into Coops powerful scene for no reason.  

...and NIN playing at a bar in a small town of 50k was kind of laughable.

I thought NIN was the most fitting music yet for this new season!

Plus we know that Trent and David hang out, so I was not in least bit surprised to see NIN featured.  What surprised me was that they had that dude in the tux introduce them.

And as I said in another thread, what followed was essentially and NIN video.

So have the music at the end of the show like every other episode.

The music might fit and Lynch and Reznor might be friends...

...but NIN has nothing to do with the genesis of BOB.

Its like Lynch placing a video of "Terrible Lie" in between Leland confronting Laura and Ronnette in the cabin and killing Laura in the train car.

I don't know, an argument could be said for just how fitting that song was:

She's Gone Away Lyrics

Posted by: Zack Sisson

So have the music at the end of the show like every other episode.

The music might fit and Lynch and Reznor might be friends...

...but NIN has nothing to do with the genesis of BOB.

Its like Lynch placing a video of "Terrible Lie" in between Leland confronting Laura and Ronnette in the cabin and killing Laura in the train car.

Terrible Lie has nothing to do with that scene.  It is more to do with Reznor feeling like religion has mislead him and lied to him.