i think the questions in the op should be split apart: i'll only talk about the culture industry:
i dont think there is any diminuition in the production of new and interesting work in any of the arts.
if you think that's true, it follows from the fact that you are probably looking in the wrong place.
if you want innovative and exciting new work, chances are it's all around you.
turn off classic rawk radio and explore what is happening, what folk are doing. if you dont like what you find, do it yourself.
in music in particular, you'd never know anything about 99/100 of what is new and innovative because--well---where would you hear it?
commercial radio is bullshit and has been bullshit for years.
this is not because it's commercial--it's because, well, its mediocre. risk-free, toothless, repetition entertainment designed to keep you vaguely interested until the advertising comes on.
nothing else.
the radio wasteland is such a shame, it is so suffocating and monotonous: i dont know why folk dont just say fuck you to the lot of it and, say, start lots of low-powered stations. start a little revolution. look at prometheus project's website. they've been after clear channel and the monopoly of the beige that is american radio for a long time:
http://www.prometheusradio.org/
you cant rely on purveyors of advertising to shape your horizons. so make your own. it's easy and its cheap. or start a netradio outlet. it's easier and its cheaper. or learn an instrument and start a band that plays what you like.
but fucking do something: find out what's actually happening around you---the problem is not that there isn't a pile of new work--its that you dont know where it is--so find it.
---maybe there are these tiny informal venues around where you can hear new stuff: check them out.
---organize house concerts if nothing appeals. why not? it's easy. people will come out.
you'll hear something you dont know about. i
t's win=win.
look around. listen around. do something. if you let the commercial wasteland define your tastes, the joke, comrade, is on you.
but perhaps what the real problem with clear channel et al is that they do not feed you what you want to be fed--the problem underneath that is not being fed things, being told what you want--the problem is that you'd rather be fed something else.
that is different...
if that is your issue, i really dont care about it.