Now that professional recording can be done on a desktop computer with a good sound card and software (like the one sitting next to me at my desk!), that spelled the beginning of the end. I'd expect stage shows to get better too, since there's no enormous drain on the profits. Industries come and go, through history. I'm sure Ice House owners went nuts when the refrigerator was invented, and caught on. Oh well.
Ditto on the home recording... I've been doing that since the 80s... I still remember my first 4-track recorder - found it used at a music shop, and used it to demo stuff... it was a blast :0)
I've moved to digital in the past few years myself, and finally decided to just make the time and get some serious songwriting done
I know I'm not marketable enough for a major label, and quite frankly I don't want one to own me. When I'm ready, I'll release my own stuff on my own label. :0)