That has been true of most of the music of any era. The best still survives if it had the good fortune to see the light of day. And great quality recordings of truly great music are still widely available as long as you don't slave yourself to what is "current." There are several awesome hi-fi blogs devoted to software that will have you compiling lists of recordings to acquire far beyond your ability to pay for them. Good music is still being recorded, and there is a large catalog of good music currently available.
Most important today is to find today's musicians' avenues of getting their stuff out there. Today you can record much better than a traditional demo tape in your basement with a few quality mics, a USB mixer and a high end sound card. The "record deal" is no longer the only way to gain exposure, and there are acts on the radio now because of their youtube success rather than the other way round. The label executive was always better at wearing a suit and stealing from the talent than he was at actually making any music. Today's convenience tech is shoving him out on his butt. We're only at the beginning of the digital age. As the new pathways to success get better defined, you'll see middlemen cut out, musicians keeping what they earn, and music prices to consumers continue to drop as the RIAA cartel is busted.
So it's not all to the bad.