500 years ago, churches didn't have major highways out the front door, construction sites down the street, planes going overhead, and any number of other elements of noise pollution preventing the audience from hearing. It's wrong, IMO, to blame the acoustic vs. electric (or PA vs. non-PA) decision entirely on "bad" audiences.

Amplification is often critical. Bad amplification sometimes results, particulary in the hands of amateurs in places like churches and small bars. Too loud amplification, a sub-set of bad amplification, also sometimes results, usually due to half deaf musicians and sound engineers (or those that think the entire venue is about THEM) :)