Look, music is simply communication. Period.
One could make the argument that conversation is dead because it no longer follows formal rules or sitting rooms and tea. But to say something like that would make you sound ridiculous and out of touch with the world.
Music evolves, like every art form, but essential remains a dialogue we have with ourselves. Or monologue depending on your ego. We are in a fantastic time right now where we can choose the dialogue and setting rather than having only the "big five" to allot us our choices.
Talentwise, it doesn't just disappear from the planet. There are a lot of hungry musicians out there self-promoting, and dying for you to hear what they have to say. You can choose to ignore them or actually listen. The problem is that now it takes a little work.
Genres - To claim one is superior to another is just silly. A claim I read earlier saying that electronic music is the only innovative music is bogus right off the mark. Songwriting is about evoking a human experience - which may or may not have to do with manipulating sound effects. If it is done for a purpose to enhance the experience, great! If it is done for express purpose of masturbating to your superior technique then it becomes a marketing gimmick equivalent to the oscar mayer wiener song.
New songs - Ok, there is a mathematical limit to the amount of chords combinations and melodies that can be produced. But if that's all songs are then computers might as well replace us. Once again, songs are about relating to the human experience. A 1-4-5 combo might seem stale and overused but it is an essential part of western music psyche that has lasted hundreds of years. The difference is in the hands of a master it can come out beautiful, in the hands of a hack it becomes a bore. Just because you string together a new series of chords not heard on the radio now doesn't make you a genius. Anyone looking for the "brand new" is largely masterbating to their own superior music kung-fu and is not interested in music as a dialogue, only in music as a means to build up their ego.
Let go of trying to own music and embrace what is happening right now.