Most people today think of music as a commodity rather than an art form, something to flow in the background like having electricity or running water.
Moreover, most people today use music as a drug, rather than a door into their souls and/or a gateway to theophanic experience. That is why overproduced music of all pop genres, from country to dubstep, exacerbates the druglike qualities of music--incessant beat, perpetually loud dynamics, minimal melody--the same way crack exacerbates the druglike qualities of coca leaves, or RedBull exacerbates the druglike qualities of coffee beans.
Your post reminded me of something else I figured out around 1998. That was when I was in my daughter’s high school gym waiting for basketball practice to end. On the bleachers, CD’s were scattered everywhere next to portable players. EVERY SINGLE ONE OF THEM was home recorded. That was when I realized recorded music was dead.
And as far as I’m concerned, the IPod killed recorded music.
Which is why people enjoy GOOD live music these days. And I think quality live music will continue to thrive, but with stuff like uTorrent, and the attitude toward recorded music, I think the only way people will make money in recorded music is going to be in commercial jingles, etc.
Live performanc will be where it is at, at least as a real income source for the performers themselves. Kinda like professional sports.