Aside from the techie stuff.... I blame the Marketing Men!
In a world where youth is brought up to think Pop (American) Idol is the height of creativity, where are we going to get the next Beatles, Clapton, Springsteen, Sex Pistols, Talking Heads, Joy Division, Fleetwood Mac, etc. etc. from (I know someone is going to have a go about marketing and the Pistols, but before you do, have a good listen to "Never mind the bollocks"!!).
I'm sure they're out there, but they won't get anywhere because they won't get contracts because they won't make easy money for the their publishers (although they could make a fortune if they were the next "Beatles"...) because the Marketing Men will prove, with powerpoint presentations, they are not viable, not worth the financial risk.
Creativity, and in particular the intense emorions that can be released through music, are being stifled at the expense of Corporate greed. For now. I do predict a resurgence of "from the heart" performers soon. People can only put up with manufactured "safe" music for so long.(That's why punk started....).
As to the wonders of our old music systems, don't forget, they weren't perfect either. I used to get lost in music, run from a cheap Dual deck, a (not cheap) Meridian power amp, Meridian pre-amp and Solitaire Deisis speakers. Sounded gorgeous.... until the needle picked up a bit of dust and the whole experience was ruined!!