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I have no problem with anything in your post happening. I haven't had TV in years. I went to the movie theater once in the last five years - because someone gave me a free pass (although I will occasionally rent a movie). I DO download music, but either legally or it's old stuff that I can't even find in used record stores.

When it comes to recorded music and movies: I like to make music, watch others make music, and ride my bike a lot.

You might not have a problem with it, but I think one of the saddest things that could be said about our generation would be that we were the ones that took music out of people's lives. If the national music industry falls apart the local music scenes will become smaller, it's exposure to music that makes people decide to make music. If the industry crumbles people wo't be exposed to music so regularly and some will manage to avoid it all together, then fewer people will decide to make music. Our generation will be dead by then, but that's a lousy gift to leave the next ones. I've always felt it's our duty to leave the place better than we found it, we can't do that by taking music away from the world.