People going out, and certainly the younger ones, want to be entertained and could not care less whether it is live, pre-recorded, karaoke or whatever definition you want to attach to it.
I have a difficult time believing that. If true, then why not just use a $5 MP3 player instead of a $5000 Tyros 5? That's saying that no one cares about the musical talent, prowess, accomplishments, etc. of the performer - that he/she could be playing CD's behind a big curtain ala Wizard of Oz. I, personally, would never want to play for such an audience who, according to your statement, couldn't care less about the performer, as a person or as a musician.
I've read where many of you go to great lengths to make sure the audiences know it's YOU playing; WHY? if it makes no difference. Truth is, they aren't going to believe it's you playing bass, drums, strings, brass, piano, and guitar all at the same time anyway (unless you're an octopus). Of course, an audience's reaction to (the source of the) music is very much dependent upon the venue and the age and sophistication of the audience; for instance, you will NEVER, EVER see an arranger in a true Jazz club if you live to be 200. Same is probably true of any hard-core genre' club, be it Country, Rock, or Blues. The audience will INSIST on real musicians playing real music on real instruments.
Now that's not to say that Arrangers don't have a place in the music world. The 'instant gratification' factor alone is a powerful buying incentive, especially for the marginally skilled (but well-heeled) non-pro home player. It is also well-suited for less demanding audiences such as Nursing homes, particularly for solo entertainers where the emphasis is on SINGING and the arranger is merely an alternative to 'backing tracks'.
So.....will the arranger keyboard fade into oblivion (as predicted by DNJ) as did it's predecessor, the auto-accomp. organ? Probably not, at least not in the immediate future. We tend to base everything on what we see in the AMERICAN market which, surprisingly, is not the only market in the world. It will probably never replace live bands (nor was that probably ever it's purpose) in most venues but will probably continue to remain popular with a small cadre of OMB performers who want to differentiate themselves from their 'backing tracks' counterparts.
Just my .02 cents worth.
chas