A couple of things to mention here, just because somebody isn't playing in a band, doesn't alter whether or not they're a guitar player. From a younger viewpoint, not knowing how many people played the guitar in the past, I'd have to say that there are a lot of guitarists of my generation, most of them buying Epi Casinos (the brit-rock hipster types with long ginger hair) or the Metal types who buy Ibanez(es?) with too many strings, and playing their favourite hardcore-metal-core-grunge-death or whatever it is. Then there's the type who'll have an acoustic guitar, and bash out the latest pop tunes in the high-street for fun (and tips!). You can go to a local folk club though, and it's filled with people a couple of generations up (late 50s, early 60s) who will play nice Taylors or Martins or Larrivees. Our local churches have worship bands filled with people in their early 20s too. I should probably point out that most (all but one) of the people I know who play the guitar (of all 'talent spectra') are self taught. I guess it depends where you look, but there's definitely enough younger guitarists with enough talent to fill the world.