I think the issue is more about the lack of true diversity. Look at music for example - to achieve global success, bands all over the world need to start using western rhytms and melodies, losing the very things that made them unique.
Yes, sure, everything is about a lack of diversity. You might want to look some more into musical theory and where those twelves notes, rhythms and melodies originate from in the first place.
Not that there's no innovation in niches, but those never reach the highlight.
https://en.wikipedia.org/wiki/World_musicStarting with the 60s hippies who need a haircut got rather into Indian stuff. In the 80s you had an African wave with the likes of Paul Simon. Peter Gabriel was all over the map. Hardly niche. All of this comes and goes, and comes round again. A lot of the biggest stars at the moment are not from the US/West.
has almost a decade ago renounced all pandering to the audience, started playing incredibly complex music, polyrhythms, fractal melodies, uniquely tuned instruments - and has since lost almost all of his audience and the income which came from music
Jacob Collier seems to be thriving:
https://www.youtube.com/watch?v=meha_FCcHboNow whether or not there is money in it is altogether a different question. Music has been devalued. You/Friend might enjoy Rick Beato ranting about this subject on Youtube.
This isn't a new thing, if he wants to make money he needs to look cute, even the Beatles started by getting a makeover and going the boy band route. Such is life.