Reconcile them? They're two irreconcilable concepts, that's the point.
People will create, rearrange and play their music regardless of those who come along and stick labels on what they do.

The "collectors" had an agenda of sorts. This was usually to "save" music from the clutches of ignorant peasants. The musicians just played and sang it, because it was theirs.

What Tom Bliss is getting at (seems blindingly obvious to me) is that the current circuit is hopelessly inadequate to support more than a handful of professional (i.e. "paid" artists. Doesn't, of course, prevent all the rest (who may or may not be "professional" technically) from performing in their own time but this does not, obviously, pay mortgages.