We were discussing this on another musician forum.
It has been a double (triple, even) whammy for musicians, compared to mid 90s and back. There used to be a time where you could play in a band, not a huge signed one, and still make a living. Just off playing the door, on the regular bar / club circuit.
People went out much more back in the day. A regular weekday gig could bring you more money than a weekend gig does today. Unless you play in the most tourist-y hot spots, in the largest cities (think Nashville Broadway), you're not going to find places that play music all days. Not even 3-4 days a week. If you're lucky, it is going to be live music a couple of days, and almost only during weekends. Assuming you're paid $70 - $200 pr. gig, calculate how many gigs you need to play a year to not live in poverty.
Pay hasn't really changed much, either - for the musicians that play for a flat fee, that figure has been standing still for decades.
Almost every professional musician I know will have a battery of side hustles, these days. They will take every gig they can find, they will give lessons, they will do studio work, they will work as techs, become niche influencers, they will do whatever it takes.
But more often than not, they will have abandoned music as their main revenue stream, and rather pick up regular job that generates a steady paycheck, and gig during the weekends.
I can count on one hand the musicians / artists that have managed to make it "big", as in being C- or D-lister artists, and thus making a living off their recorded and touring music. They still spend equally much time on their social media, as that is what gets your name out. There is an immense pressure to play the algorithm, because that could make your tune blow up and become viral.
In fact, that is often how musicians become "famous" these days. Suddenly their tune becomes viral in tiktok vids, and that's how they manage to get millions of listeners...doesn't actually pay much, but it puts a big spotlight on your name.
It's weird to call it dead because I'm not sure it was ever truly alive.