What are now known as Jazz Standards, were IMO pop songs of the day. Any good Jazz band can and does "Jazz up" pop songs. One that comes to mind is Mile Davis version of "Time After Time". I suspect there are many more . . .
The State of Jazz
I was recently listening to "The Best of Diana Krall" LP. It is an amazing album. But later, I reflected on the fact that she sang almost entirely 'standards,' which means the songs are all at least 50 years old. Then, I thought, why hasn't the Jazz Community produced any more recent songs that have become standards. Then I thought: it is most likely, that the same standards (i.e., basin street blues; willow weep for me, etc.) will be sung for the next 50 years--and I wondered, are we producing any songs today that will become standards. I don't think so. Bu, why not?