I went to a lot of shows in that period, and I never heard anyone say, "Wow! They should really put the Midnight Oil out on vinyl!" or "Soul Asylum's "Hang Time" would really sound great on vinyl!" any more than I've ever heard anyone say "Please saw my legs off!"
They were certainly in a minority, but I always knew several people who still spun vinyl, and often preferred it even during the heydey of the CD.
I went pretty much all digital pretty fast, myself.
BTW, I was reading some of Amirm's show reviews and he often expressed dismay at how many rooms used vinyl as a source.
Though I enjoy vinyl at home, I have a similar reaction as Amirm. If I want to audition speakers at a store, or hear speakers at an audio show, I'd MUCH prefer the source to be digital. There's enough ways to screw up the sound of a vinyl set up, and vinyl has it's inherent issues, that I don't want to have to listen around the colorations of vinyl when trying to determine the sound of the speaker. That even goes for auditioning speakers and amplification. Even though I use tube amps at home, I prefer to audition a speaker with a solid state amp because that more neutral source will give me a better sense of the capabilities and character of the speakers. I'll add my preferred colorations with tubes and vinyl at home if I wish, but I first want to hear the speaker unencumbered by colorations I can't control.
As for the production of "high quality" music, look no further than streaming services themselves, since the days of musicians making money off of recorded music died with those services. Elvis Costello made this pretty plain in his memoir, where he discusses the sad truth that he has to tour because no one buys recorded music in a form that comes close to earning a profit. (One friend told me he has to sell 10,000 downloads of one song on Spotify in order to make 10 quid. He, of course, still has a day job despite having released numerous albums that have been critically well-received, including in the pages of Q and the Wall Street Journal.)
This dilemma for today's musicians has become well known enough (and mentioned by enough musicians and stories) to have entered the popular culture. This is why, I believe, that imillenials and other young people about the vinyl resurgance often mention buying vinyl as their way to help support their favorite artists. I like that aspect as well.
No question but that the loudness wars and other factors have contributed to the problems of modern rock and pop. But the real story is the gig economy: The exploitation of workers to benefit the new "entrepreneurs." Taxis? Why no, but you can hire someone to use their own car to drive you somewhere, someone who has no health insurance coverage or a living wage. Someone who hasn't realized yet that it actually costs him money to make those Uber "big bucks". The digital culture was birthed by people who never worked a real job in their lives and who don't give Shit One about the economic well-being of anyone else. That's what has transformed a formerly thriving music scene into merely another corporate decision about maximizing profits.
Get off my lawn!!! ;-)
Whether your analysis is sound or not, I do find it fascinating that it's a demographic that grew up in the digital age who are a force in the resurgence of an analog medium like vinyl. Intuitively it would seem they would be the last one's thinking about it. But I guess the trend says something about human nature, where a fully digital world of choice doesn't seem to meet everyone's needs.
There's just tons and tons of chatter about vinyl all over the net and it's interesting to visit those conversations (for instance on Reddit, where you'll find younger people/millennials discussing vinyl a lot). Some of them are more technically aware of the superiority of digital, but say they still like listening to vinyl, others don't know the subject but don't know or care which is technically more accurate, they like both or prefer vinyl, and others are in the "wow, vinyl sounds so much better, I can't believe I've been missing out on this sound quality!"
For those who think they are discovering "better" sound quality I wonder how much this might have to do with the attendant effects of getting into vinyl records. I'd guess many are used to listening to music on crappy ear-buds, or maybe low quality blue-tooth speakers sometimes, or whatever. Then they want to get in to vinyl, the aspect of buying new audio equipment rears it's head, at least in the form of a turntable. Then they need to make sure they have an amp, speakers etc. I've seen numerous stories that start with "vinyl seems cool" leading to a new audio system. So it could be just as much the fact of paying more attention to the equipment, maybe buying speakers even marginally better than they've ever used before, that contributes to their impression of better sound from vinyl.
In fact, ironically, after years of compressed music listened indolently on laptops and earbuds, it occurs to me that vinyl, of all things, seems to be shifting consciousness of young people back in to the idea of sound quality! And motivating the purchases of new audio gear. And because vinyl is tweaky, people become aware of the concept of "better turntables, better cartridges" etc and I've seen lots of them get the equipment bug "I have this cartridge to start off with, but I'll upgrade at some point."
Life. Unpredictable and all that....