You guys should really be paying more attention to the "Indie" scene. I mean there's a lot of silly emo girly men with funny hair and skinny jeans but that's where live rock instrumentation is still very much alive and well amongst the youngsters. Some of those kids are pretty good too.
 
I like my rock a little more filthy/angry but there's a lot of stuff that reminds me of a modernized variation on classic garage rock from the 60/70's.

craigb
Running with James' comment...  Could it be that there are simply MORE kids making music now?  Maybe the same number playing guitar as before, but lots more doing loops, etc.?

That would be my guess.
 
Also it occurs to me that maybe we're approaching a point where there are *enough* guitars in the world, and many are getting passed down the line to kids, or bought secondhand rather than new. It's not as if they wear out or stop working and get scrapped, like cars, or toasters, or microwaves...

Jari

craigb
Running with James' comment...  Could it be that there are simply MORE kids making music now?  Maybe the same number playing guitar as before, but lots more doing loops, etc.?

If so, then why guitar sales are struggling? https://www.washingtonpost.com/graphics/2017/lifestyle/the-slow-secret-death-of-the-electric-guitar/?utm_term=.41b02d2644e7

There are more manufacturers now AND more used guitars available.

jamesg1213

craigb
Running with James' comment...  Could it be that there are simply MORE kids making music now?  Maybe the same number playing guitar as before, but lots more doing loops, etc.?

That would be my guess.
 
Also it occurs to me that maybe we're approaching a point where there are *enough* guitars in the world, and many are getting passed down the line to kids, or bought secondhand rather than new. It's not as if they wear out or stop working and get scrapped, like cars, or toasters, or microwaves...

I think the market is over saturated with guitars.  If you walk into a Guitar Center today, which I did at lunch, there are many Gibson LP's, Traditional and higher; along with Am Standard Strats hanging from the used wall, for 2/3 the new price.  ALL in excellent condition.  
 
Check out all of the used high end guitars on Craig's List and Reverb.
 
Not to mention that the CNC process of making guitars has increased the output of new instruments.