Yes, musicians today have to compete with the entire playing field of all music that's gone before, because to young listeners today, everything EVERYTHING ever recorded is out there available for the taking, and it's all on a level playing field. There is no concern about 'who was the first to do this' or 'what was groundbreaking at the time.' To listeners today a Hendrix imitator is just as valuable as Hendrix himself, a totally-derivative band is judged to be better than the original if they're a bit catchier or recorded slightly better. There is no context whatsoever to modern music, no sense of progression from early raw roots to final polished form. Everything is absolutely flat and equivalent.
Bands these days choose from a smorgasbord of musical influence. "We'll have a bit of Beatles bass riffs, with drumming from The Smiths and horn charts from Tower of Power. Won't we be original???"
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