One place where regulations had a definite impact was in choking off the EDM scene back in the late 90s/early 2000s. While it was thriving throughout the world, several state laws were passed (IIRC New York state was the first in a series) making clubowners liable for drug use on their premises. The joke at the time was every high school principal would have to be arrested, but the laws had a chilling effect on dance clubs.
Having seen what drugs can do I'm certainly not in favor of a drug culture, but I don't think it's correct to deprive the majority of people something enjoyable because of the actions of a few. In any event it was a crucial time in the evolution of EDM, and it was like slamming on the brakes.
I do think live performance will make a comeback within the next 10 years, possibly through unanticipated media (e.g., pay-per-view live streaming in movie theaters).