Well put, Jeff! We can choose how we want to play the game, but the more we discriminate against the art-buyers' taste, the fewer opportunities we'll have for gigs.
And for basically the same investment in equipment and preparation of backing tracks, the musical entrepreneur could easily offer all 3 services to the entertainment-buying public:
If the venue wants a small band, then perform along with your own backing tracks, and you're a one man band.
If the venue wants karaoke, then let others sing along to your backing tracks.
If the venue wants a DJ, then play CDs through your PA system
Somebody in your home town is paying SOMEBODY for at least ONE of these services on any given night of the week.