Live music will never die out. People will always enjoy the performing aspect of music.
Technology (midi, drum machines, computer daw, software applications, etc) and the streamlining of the music industry put the live musician on the backburner in terms of the recording studio.
I understand your point, technology (drum replacement and audio quantizing on rock records, pitch tuning on pop records, etc) aims to make music perfect.
But then again records usually aim for the most ideal perfect approximation, it's been that way since the inception of the recording studio and commercialization of the recording industry (just harder to do back then - Recording multiple takes then splicing and editing tape for the best performance).
I also believe that primitive "artificial intelligence" technology will be a factor in music within the next 20 years. It will be it's own subset and have it's own category (with virtual artists who become popular).
But this type of technology is going to be a norm in all aspects of life (medicine, advertising, interpersonal relations, warfare, etc). It's inevitable.
Back to live music. Whether it's 2009 or 2109 or the year 9, humans will always love to venture out into a crowd and listen to someone play their favorite pieces of music live, imperfections/change ups and all.
Right now as we speak, people of all ages/cultures are venturing to some gathering place to listen to good/bad/exotic/different/cover bands play music.
I wouldn't count live music out in terms of recording just yet. Right now pro level technology is available to the most casual of consumer for cheap. This level of saturation can lead to the anti-tech musical age, where live performance becomes the different and new thing.