There's a band here in the states, based in Austin, TX., called the Asylum Street Spankers who play a freakish combination of old time, ragtime, western swing, classic city blues, and even hip hop (reformulated as "hick-hop"), all without the dubious benefit of what they call "demon electricity." Their shows are usually great, and they make a point of getting their audiences, often very young, to shut up and listen and participate. Recently though, due to their growing popularity, they've been playing larger venues, and they've started using amplification. Now they're trying to have it both ways, they use amplification, but keep the volume low so as to try to encourage the same kind of quiet listening. The problem is, every time they ask the audience to be quiet, some bozo in the audience shouts "turn up the PA," or something similar. My point is, I think that there is an interest and market for unamplified music, even amongst young people, but choosing to perform that way requires certain compromises, like only playing fairly small venues.
One other quick point regarding the statement:
"An acoustic recording, likewise, meant sticking a mic in front of the singer, or instrument, and recording the noise they were making"
Actually the term "acoustic recording" is used to describe recordings made in the late 19th and early 20th centuries that did not use microphones at all. They used the big cones, like on an old victrola, with a diaphragm that vibrated, and transferred the sound onto a wax disc or cylinder. So acoustic recordings, like acoustic instruments, do not use electricity.