Alastair,

If you want some proof that good music isn't dead, then take some time and check out what is broadly labled as "bluegrass" today and you'll find that good music is alive and well.

Not only are there world class musicians of all ages playing new original music, but the songs of the past are treated to new arrangements and include many genre's.

A good place to start would be someplace like this:

http://www.thebluegrasssituation.com/