I think there is still a lot of good music out there today, just have to know where to look, a lot of the bands I listen to these days most people haven't heard of but they're putting out IMHO some great, great music.
Alejandro Escovedo - punk rock kid from Huntington Beach, CA who grew up and moved to Austin. He's lived quite the life, his last album "Real Animal" is a story of his musical career, from his first band The Nuns in San Francisco, he also lived in the Chelsea Hotel in 1978. He was standing on the sidewalk outside the hotel when the police hauled Sid Vicious away.
http://www.youtube.com/watch?v=uiziSrOQfZAChuck Prophet - Based in San Francisco, he actually co-wrote the Alejandro's last record which is how I found out about him. He recorded his most recent album in Mexico City in the middle of the swine flu outbreak.
http://www.youtube.com/watch?v=ckIKGpudOvIJon Dee Graham - Another Austin musician, one of those great rock 'n roll voices. It sounds like he smokes twenty packs of cigarettes a day.