I don't know if there's a collapse of musical literacy as Mrs Guest suggests. Things are certainly different. I think one way to describe the "new world" is that it is extremely passive. Playing an instrument is a lot of work. Singing is tiresome and makes people look at you. Basically anything that us old farts liked to do, now has an average age of participants over 60. Hell, where I live, the average age of farmers is close to 65. Basically, anything that involves work, does not appeal to youngsters.
PS: I promise I'll write something positive next time I post.