The guitar is indeed alive and well. The traditional guitar tube amp, though, has faced some strong digital challengers.
The history and future of guitar noise.
Adrian Belew.
https://www.youtube.com/watch?v=yM5qTMXJkT0
If you watch and listen, he seems to want to come back to the original “raw” sound for inspiration.
Belew is a digital challenger.
So true. Non-tube amps and even hybrids were terrible in the 80's and 90's, but they have come a long way. I use a Peavey Vypyr Tube 60 for noodling around (I'm not currently gigging). It has a great sound. I got it because of all the effects and stompboxes that come with it. Can't beat it when you look at bang-for-the-buck.
The Peavey Vypyr VIP series and the forthcoming VIP Pro (see NAMM) are solid sounding solid-state amps. Cleans aren't that great, but if you play metal, they're outstanding. I play mostly classic rock.
A lot of players are looking to "get back to their roots" and getting single channel amps (JCM 800, etc) or a small two channel amp without all the bells and whistles of, say, a Mesa Boogie Dual Rectifier Roadster. Big market for old Marshalls.
Then again, a lot of people claim to be able to tell the difference between tube and solid-state amps just by sound. I can't. The only way I can tell is from the feel - the way a tube amp responds to your playing is different than transistor, and also feels more "organic", more "alive". When transistor amps can do that, well, it will be interesting....
“The guitar is indeed alive and well. The traditional guitar tube amp, though, has faced some strong digital challengers.”
You see the prices of tube amps lately? I asked the gy at the music store why are they so expensive. He said because the sound cannot be duplicated by digital equipment.