@hawkeye10,
I went to a lot of small plays in the seventies with, say, eight to fifty people in the audience, some friends and relatives, with the odd reviewer or small theater freaks filling up some of the seats. Performance art as such burgeoned after that though. Art will find a way, even sans support systems. My first serious show was state supported - California Arts Council. That was cool. I don't know as much about music - although I follow it to some extent - but it seems plenty alive to me, even with the rampant changes in the industry.
I agree it's a shame that schools have increasingly dropped the arts, even as discussion or reference to (assuming they have): tight money, skewed (my view) priorities. On the other hand, I had probably two days of art lessons in grammar school.
I was originally put off by process art and conceptual art and have had serious back and forths on land art, sometimes pro and sometimes infernally aggravated. Meanwhile, I get those explorations and will use those as an example of "art varys".