While it's surely a blip and not a trend, there's a shortage of band instruments right now. I just donated my student flute to a nearby music store, and they said they had 40 kids on the waiting list for flutes. The Elkhart brands still exist, but a lot of instruments are made in China.
I think people are still interested in music, but electronics have taken over. Today even electric guitars are in decline.
https://www.youtube.com/watch?v=LI_Oe-jtgdI
"We've surely got trouble! Right here in River City. Right here!"
In other words: there were fewer lazy, low-effort distractions, so people had to develop more skills, more frequently.
#1 is generally correlated with increased mental health, something which makes sense when you recognize that we are a social animal.
#2 would make for some interesting research