What's going on with the audio market?

38, 6, hopefully single digits.

I work in music and spend most of my time around people who either work in music or perform or have a voracious appetite for discovering new music. Very, very few have any interest in this hobby and I don't blame them. Not being a part of this doesn't diminish one's enjoyment of music, at all.

Mapman really got at one big driver of Aphile behavior of late. Even the remaining aging Aphile consumers are getting plain old fed up with.....

"Not many buying the hype anymore these days"

Gear is so darn full of hype and at crazy, I mean crazy, high prices.  It is out of hand and many of us are jumping off the crazy train. I blame industry manufacturers and retailers for their lack of creatively and tired ways. Yes, some are doing it right and will survive, but many "high end" companies will be gone over the next 5-10 years.

I am 63. I have been a hobbyist since college, (AR table, Sherwood integrated, EV speakers). Spent a decade in the business. Owned and sold equipment in an age when a Iowa town of 100,000 had 5 local stores, selling ARC, Magnepan, Polk, Thorens, Infinity, Bozak, ESS, Ohm Walsh, a/d/s, Klipschorns, Altec 19s, AR-9s, Tannoy Dual Concentrics, JBL Century, Hafler, Carver Amazing, Epicure, HK Citation, yada, yada. The town has grown to probably 170,000 and now has a single Best Buy. I am sadden by the decline in brick and mortar stores. Part of the decline is the challenge all local retail faces as online options impact our economy. The decline also, more importantly I think, reflects the turn of the fashion cycle between generations. My children grew up with great audio (and left home with systems I put together)-so its not that they were not exposed to quality, its just not as important to them. Conversely my Depression surviving parents must have shook their heads as I became more and more obsessed with musical reproduction, (even had a "career" in it). So much of our identity and preferences are of the time we grew up in. Hey if you were in college in the 70's you wanted the best system you could afford, for status with the guys, and sex appeal with the ladies, (turn down the lights and put on that Moody Blues or It's Beautiful Day you've been hiding). Today's hipsters are measured by their phones, tats, taste in microbrews, etc. -it's not a value thing, it is all equally valid/ridiculous. They will lament when the last "Body Ink Artist" closes shop due to their kids finding their own, necessarily different, aesthetic.

My interest in audio began at a very young age of 6, when I stayed up listening to am radio hits.  Eventually, at 9 I received my first compact record player, spinning 45's and by the age of 11 33's.  Although, I always had a great desire for sound quality, it took until my early 20's to discover that audio could come close to replicating the live venue.  
Throughout the last 50 years I have personally known maybe 6 people...outside of the audio world...who cared about audio equipment.  It has always been on the periphery.  All  my friends, from high school on, just jammed tunes on their 8-tracks, cassettes, etc.
The explosive pricing for top end equipment appears to be nothing new.  Back in the late 80's I was astounded to read of a $7500.00 amplifier.  Now, that's on the lower end of the tier.
Personally, I don't see a drop in audiophile interest...it merely seems to  exists in the same world of esoterica as always.