Its the whales and the people that can't afford to buy more media than they already do.
If the industry actually got the big spenders to do away with their self-hosting/data-archive setups, they won't actually put that money into more media, as they're already budgetting a set amount for the media itself which is not going to increase.
For your last question: some people still do. For the rest: Bluetooth remote, Bluetooth speakers. This was back when the Bluetooth emphasis was on range, versus now its on power savings. Building materials are still the biggest issue affecting the range and quality experience, but reaching the next room or two was usually no big deal when this thing was made.