Before recorded music, people just played music for fun, or were mainly employed by very rich people to play music.

If we go back to that, I don't think music as such will suffer. People create music mainly because it's fun, not because they want to be rich.

You certainly do get live bands in good pubs. Find a better pub.

And yes, I think creating music is far far easier than creating a movie or a modern game, where you have to organize music, lighting, casting, voices, graphics, gameplay, camerwork etc etc