One thing that everybody should be aware of is that everything tends to change over time. Back in the 1950s there were many country fans who thought that adding steel guitar or electric guitar to country music was "a sin." As time has gone by, they have both been accepted as part of a traditional sound.
ChiliBill, I also kind of doubt if any of the early country stars spent time on the back of a horse (i.e., they weren't cowboys).
I do think there is a fair amount of competition for the C&W dollar. My impression is that the forces that control Hollywood have been trying to tap into the Nashville movement. Since they are more R&R oriented and many of them control C&W radio stations (financially), their "new country" sound predominates in many areas.
So things have changed quite a bit over the past 50 years, but it's basically up to each individual to enjoy what they like to hear. Fortunately, with the Internet, we can have access to both the old and the new with just a few clicks, to enjoy as we see fit.
Chester