I think genre classification is important to an extent, don't get carried away with it but I think simple classification is necessary, it just lets you know which artists are on the same page, and saves time so you don't have to constantly tell people which bands to check out by saying "well they kinda sound like...".
Its the reason metal fans keep looking for new metal bands, punk fans keep looking for new punk bands, prog fans keep looking for new prog bands and indie fans keep looking for new indie bands. Theres a lot of bands you never would have discovered if it weren't for their label.
People sure do get caried away with sub-genres though, metal has WAAAAAAAAAAY more than it needs and most of them are pretty much the same thing.
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