I agree with M.Ted.   While the numbers might not be the same as they were 20 years ago, there are still many opportunities for live music and people are going out - but there is more competition.

Texas Guest alluded to DJ's making 5 or 6 times as much as sideman. I am certain that Guest refers to club DJ's who spin and mix recordings to generate an atmosphere.   There is more talent required for that job then people give credit for - a talented DJ in a club will draw a following.   However, this is a different style of music from the folk styles we have been discussing. It may be an option for some, but I don't think this draws away from folk audiences.

There are more non-profit venues presenting monthly or weekly concerts than ever before. Bookstores, coffeehouses, libraries and other community venues are open to music these days.   Don't forget the house concert scene- an important factor in the way music is presented in 2008.

People are going out to see live music, they are just going to different places to do so.

I also truly believe that we are seeing more people trying to make it in the music business than ever before. For a minimal investment, people can now record decent sound in their homes and burn CD's. As a radio host, I am receiving more CD's than ever before. The competition for finding a slot to perform is greater than ever, and while I believe this has allowed more talent to be exposed, it has also allowed mediocre talent to flood the field as well.   While the cream still rises to the top, it becomes a harder process.