As a Gen X-er, my formative years were through the 90s. I was an avid listener to grunge and rock at the time, so bands like Nirvana, Pearl Jam, Alice In Chains, Soundgarden, Faith No More, Metallica, and Tool were staples as well as stuff like Blind Melon and Days of the New. My tastes have grown to include classic rock like Zeppelin, Yes, and Hendrix. I also listen to Mudvayne and Slipknot and have recently gotten into Volbeat. John Mayer, Ed Sheerhan, Kaleo, Red Wanting Blue, Ray Lamontagne, Ben Howard, Mumford and Sons, and others along that line have become part of my regular listening, as well. This is a short list of the artists I can pull off the top of my head.
If I look at that list, there is a pattern. I like guitars, I like songwriters, I like lyrics, and I am open to a wide variety of styles.

You are correct that it is a challenge, but it is out there. Either their aren't as many musicians or they just don't have the vehicles for wide spread exposure like they did, but you can find decent artists if you look.