Everyone has different tastes in music. Like my grandpappy said, if everyone had the same taste as me, they'd be married to my wife. Country music is alive...maybe not well but alive. You can still find almost any music style if you know where to look. For old time appalachian music I suggest you visit Virginia and West Virginia. Places like the Old Fiddler's convention in Galax VA still features music like the Carter Family introduced back at the Bristol Sessions. There are people paying their dues at clubs and joints every night in and around Nashville. They do decent covers of the respected artists of yesteryear. Obviously people like the new Country or else you wouldn't have concerts selling out in almost every city on the tour. Radio Stations get their revenues from advertisers. Advertisers place their ads based on listeners so if the "new country" isn't being listened to, the station will change their format. Just my opinion.
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