I remember reading an old rant by someone (I want to say letter sent to a newspaper) who complained that the grammophone will destroy music.
That said, I'll still take Spotify and access to all the music in the world over random neighbors playing the fiddle any day.
I grew up in a family of musicians and I really miss the social element of just plunking down next to someone to share in performing a song. Closest experience I’ve had to it is couch multiplayer video games, but it’s still not the same. Still do see the occasional person with a guitar on the porch, but I can’t help but think it would a lot more common and a lot more fun without recorded music.
I'd like to highlight that synthesizers are very easily available now. As for physical instruments... it hasn't really improved or worsened significantly in the last few decades.
There being less easily available music wouldn't lead to more people learning how to make it. Just people coping without it.