Analog synths don't use software.
But anyway, I do agree that most musical instruments use software of some sort, but there are serious differences in sound quality and intuitiveness when using hardware over software.
And you really don't need to spend a grand on speakers, of course it doesn't hurt. Right now I do everything on a pair of headphones because I gotta keep shit quiet! haha. But I used to have a pair of KRK Rockit 8's and I think they sounded great and really thumped. They are so clear and loud that I literally used to throw house parties with them... but they aren't the most accurate monitors in the world for critical mastering.
Anyway, I know I'll catch a lot of sh1t over this, but I think there's basically four paths that people are going to follow when it comes to getting what they need to make/record music:
1. The ultra cheap route is going to be the person who downloads a bunch of software and vst's, and maybe invests some money in a midi controller. Of course having a decent pc is necessary.
2. The next option is going to be people who pay for software and most likely have a midi controller, audio interface, mic, and basic things necessary for home recording.
3. Next we have people who have the ability to invest a sizeable amount of money in gear. They might not have everything you need for a studio, but probably quite a bit of gear.
4. Then, finally, we have the complete gearheads who have nice jobs and can afford to spend thousands of dollars on really nice gear. They probably know what they're doing, although not necessary, but if they do, their music is probably going to sound better than anyone from the first 3 categories because of quality of gear and obsessive love of making music.
I'm personally in group #3, but I've decided a long time ago I am never having kids and I live fairly cheaply, I don't go out and buy new clothes all the time or waste gas money driving around or going places and spending money when i could just stay at home, save money and work on music. Eventually I'll have a pretty nice home studio setup, and I doubt I will ever stop buying gear!