Has the guitar become antiquated or has Nepotism taken over?

Has the guitar become antiquated or has Nepotism taken over?

   I left Trenton Ontario to move to Toronto in 2004 to attend Humber College's guitar program and get my playing career going. Seven years later I still haven't made as much as i used to make playing the bars in the Quinte area. Wanna know why? Nobody cares about how well you play the guitar. In Toronto, people would rather hire somebody they know who is somewhat proficient than a smokin' player. Case in point, I went to check out a friend playing at a bar in the east end some time ago and he had a guitarist who had attended Humber and was popular amongst his friends. This guy had a Bachelors Degree in Music by the way. His playing was boring as shit and he stood on the stage like he needed to poop for two hours. This guy is in at least ten bands in the city. Why? Because he is fun to hang out with, or he is a nice guy or aiousefoiaweganeaklwefoiawefhipoa. Whatever. you get the point right?
   
   The guitar doesn't matter any more to a lot of people. As long as someone is holding one on stage and hitting it with some degree of rhythmic accuracy nobody cares. The most important thing is "can I hang out with this guy/girl after the gig and does he/she agree with everything I say?". Toronto is a tough city to be a guitarist in if you are the stereotypical introverted artist. 
My advice to guitarists, ignore singers. They get gigs because the average listener needs to hear words to understand anything. Ignore crowds because they are filled with people who hear with their eyes. Ignore money because it will only make you feel worthless.