The internet has taken away a lot of personalization. A lot of people are writing articles and talking about being able to social network and making these connections but I don't think anything will replace the human connection making an actual conversation to somebody face to face.
I think the Internet has hurt music more than it has helped it. The idea of giving music away for free just bothers me. And, when one band or artist gives it away, it devalues the rest of the product from those who would like to make some money or a living from it.
You can sit behind your computer and listen to music via a program or from the Internet and also watch performances on the Internet. There's motivation to sit at home. You don't have to get dressed up, or be social and for those old enough you don't risk DUI charges by drinking at home at the computer.
If artists want to have people come to their shows and buy their merchandise, they really have to make a commitment to those fans and bring the best music, shows and interaction that they can. This is something that won't change with technology or economy.
