I'm inclined to disagree. I believe the progress in music software has opened up new avenues and genres, it hasn't stifled existing ones. Instrument players are going to keep playing their instruments, just that now it's easier than ever for them to make their own professional sounding recordings and songs. On the flipside you have more and more people getting into music without requiring any formal musical background.

I also think the older we get, the more we think most music sounds the same because music inherently changes over time, and will be different to what we grew up on, but we also become more distanced from the subcultures and communities pioneering modern music trends. A young person today probably thinks all rock music from the 50s-90s sounds the same