I think Zappa here nails down exactly what happened to the music business...
http://www.youtube.com/watch?v=GowCEiZkU70
I'm definitely not in the music business, but I see in my field that people refuse to take any risks. They play everything safe, confident that they have all the answers to all the questions. And I see these people churning out hopeless crap.
This country used to take chances. Now we live in fear.