In my view, you have "died in the wool" musicians who play conventional instruments well, but who are intimidated by technology. They struggle and are sometimes "SOL" in the marketplace. Then, there are "technophobes" who know the technological aspects of the equipment, but sound like engineers trying to play music. The lucky ones are somewhere in the middle, who can handle both ends adequately.
Same thing happens in other creative fields. In graphics and film making, for instance, equipment prices are now such that professional products(or something close) can be produced on inexpensive equipment by people who faced a shorter learning curve (think Mac production stations for around $5,000, vs. $80,000 10 years ago, Digital video cameras for $3-5000 vs. Beta cams and others for $85,000, computer editing equipment...on and on). The downside is that, with arrangers, publishing stations, video production, etc. the equipment advances allow moderately talented people to compete for music, video and graphics jobs, often resulting in a lower level of creativity and final product, and a reduction in compensation levels.
There is still a market for high end productions where creativity and talent justify adequate compensation. The trick is to take the high road, and commit to doing excellent work, with appropriate equipment.
After the production is done, it stands alone with the producers name on it. Consumers often don't care what equipment is used.
The challenge is to do projects we are proud of, which shows our ability and commitment to the art form.
After all, for me, at least, that's what it's all about!
Russ