I'm seeing a resurgence, and it's good - when I first picked up a bass, the "scene" was all about grunge - music that I love, but don't find particularly challenging. The newer, "A-list" bands today are (in general, of course) showcasing much more in the way of technical abilities than in the mid-90s, which I think can only be a good thing.
Also, with Rock Band and Guitar Hero inspiring people to pick up an instrument, and getting them interested in otherwise unknown (to them) music, it's broadening horizons - there seems to be less "speciation" in music, more diversity in what people like, which I also think can only be a good thing.
And, every decade or so (it seems), people bemoan the death of music, or how stagnant the music scene is, and someone comes along and revitalizes it, spawning thousands of new bands. I believe we're about due for a change from the Korn era, which was the big shift from the Nirvana era, which was a big shift from the Metallica era, and so on.
Of course, this is all IMO and E, and YMMV.