It's there, you just have to look closely. Forget the radio--the general public doesn't listen to the good stuff any more.
Example: I went to the Austin City Limits festival last September, which had a pretty full range of fame from Robert Earl Keen and Gillian Welch on down (no superstars, but big names if you like that kind of thing). The well-known ones were all boring; the women all looked alike--thin, young, and blonde--and everybody sounded just like their recordings. I could have had about the same experience at home with my CD player and spared myself the sunburn and $2 Cokes.
The best act all weekend was a local Austin retro-rockabilly band called the Weary Boys, of who appear to be running themselves ragged playing every little gig they can get in south and central Texas. The Weary Boys weren't pretty but they could sing they were passable (and improving) musicians, and they were a Hell of a lot of fun to watch. I bought both their CD's to help keep them going.