I finally read the article and had a couple thoughts. First of all, jazz has never gone away. There are still kids playing saxophone and trumpet. Even trombone, although that's not so common. Accordian was a bit of a fad, in my opinion, just as those mandolin orchestras were 100 years ago. Classical music hasn't gone away, so there are upright bass players of all kinds. Those players will at least dabble in playing electric bass. Some of them (me for instance) are primarily bass guitar players who wandered off in a different direction. The horn players don't just play jazz. They play funk, they play pop, they play all kinds of things you don't immediately think of as music with a horn section. String players do the same thing.
Which leads back to guitars. Guitars have been around a lot longer than electric guitars. People play them. I know of at least two groups of teenagers who play in bands together in my neighborhood. It's admittedly an outlier kind of neighborhood, but I still think that's a good sign. Those kids are really into it, and they are working on doing their own thing with the music and what they can do with guitars. One of those bands is all girls, which is also a good sign. If only one gender feels the urge to play, then that's half the population that you can write off. That's not the case any more.
Whether acoustic guitars outsell electric guitars isn't all that important, at least not in my mind. Gibson was a guitar maker long before the electric guitar came along, and if Henry J. had an inkling of what to do, he would crank up acoustic guitar models, including a line of inexpensive ones. He seems to have some inkling because that's what Epiphone is making, along with electrics. Where he misses the boat is the step between Epiphone and Gibson.
Fender may have some hard times coming. They will always be around, becasue there will always be some market for electric guitars. Fender isn't known as an acoustic guitar maker, and every Fender acoustic I have ever encountered was awful in some way. Playable, but awful. That could change. The reputation will take far longer to change. Gibson already has a reputation for acoustic instruments. The fact that they also make electrics is just a line extension, not the main thing, or it shouldn't be if that's how the market turns.
The baby boom generation will die off eventually. I plan to hang on, as a tail end part of that generation, but I'm going to get old and die someday, in spite of The Who. People my son's age are more plentiful than baby boomers now, which means there will be guitar players. Maybe not so many at first, but they will be there. The industry won't die. It just may shrink. That's not a problem, in my mind.
The article was too pessimistic. I'm not optimistic, but I don't foresee the demise of the electric guitar, and I especially don't see the demise of the acoustic guitar. They are just too useful, and their sound is just too embedded in our ears. The electronic stuff has always been around. It was just a string section in the 1960s. No difference in my mind.