I think part of the reason most live shows are less than stellar is partially because of the improvements in the home and mobile listening experiences. You can find virtually every show of a mid-level artist on YouTube hours after the show is over. There are less small clubs and music venues and although the Internet has made it abundantly easier for bands to distribute their music, it's globalized what used to be local and regional music scenes, which I think has made people feel more disconnected from their local music scene and has made bands less inclined to support each other.
I have to say, contrary to some of the people who have posted here, my most negative experiences have been in smaller venues. I'm very attune to good sound and a good mix, and some venues just have a horrible track record, while others are spot on most of the time. It also depends on the bands as well. I don't go to see live music near as much as I used to and when I do, it's at a larger venues often seeing bands that I know care greatly for their live mix and their live show.
To answer the other part of your post, I think the biggest problem is that most artists and bands just don't really care all that much about how their music is presented. It doesn't mean they're apathetic about it, but I just don't think many bands, especially newer ones, really know how they are coming across live and even if they do, in smaller venues especially, they can't really afford to do anything about it. So, it's this double-edged sword and I would argue it's all connected in some way to the overall devaluation of music and the collapse of the music industry, which has had some serious effects on the live music industry.
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