I think it is a sign of the times as technology advances at a blistering pace. Eventhough there are some that may not realize or care about the skills required by a live musician, I think they are still in the minority.
However, I believe a performer should keep up with the times, and employ any tools necessary for a varied show. I will use Karaoke files, play over SMF's,use MP3's and an Ipod in a selective manner. The bulk of my shows are always featuring me as a live arranger player.
I hide nothing. The people can see when I am playing live, and appreciate that, and the use of other tools doesn't detract from that.
Just my opinion after 45 years.
Bernie
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pa4X 76 ,SX900, Hammond SK1, Ketron SD40,Ketron Event X Centerpoint Space Station, Bose compact