I took music lessons as a kid, from around age 6 through high school. My parents had no expectation that I would become a professional musician. (In fact, my dad later expressed his relief when he knew that I wouldn't). And in reality I would never have made the cut. Jazz bass was easier for me to get into than classical cello, because there was at the time a shortage of bassists, and nothing like the insane auditions that classical players go through. I was happy to let music be a serious sideline while I pursued math and physics as my college majors.
Today, my kids are themselves taking classical lessons, playing in the youth orchestra, etc. It's interesting, when the orchestra has its final concert every year, the program gives a little bio for each kid who is a high school senior, and many of them mention their future plans. A huge percentage of the kids in the orchestra are planning on studying science, math, computers, etc. A few will actually study those subjects in college, paid for by music scholarships. One of my band mates went through college that way, and is now employed in the software industry.
So it's a good kind of Ponzi scheme. ;-)
But I do see a place for the top conservatories, especially if we can find more ways for the programs to be very selective, and free. The music is beautiful and continues to evolve, and as long as the pursuit doesn't hinder everyone financially, it's a good thing to have going on in society.
I personally am not comfortable teaching music majors, but under the right circumstances I would be happy to teach electives to non-majors and kids. If you pay your dues and learn to really hear jazz, I truly believe it's one of the most intellectually and emotionally engaging experiences anywhere. I'd like to share that with people who aren't trying to make it their profession.
Think of martial arts. The best way to make a living in it is to teach, but the vast majority of students aren't there to make a living of it in the future.
keep in mind that if you're a classical musician of professional-level skill, that means you've devoted your entire life and a shit ton of money towards the pursuit of getting good at one of the hardest skills on earth. i've been programming for 3 years now, and i've written a 3d renderer, all sorts of websites, fluid simulations, a photon mapping renderer, etc, etc..i still don't feel like i'm that great at programming, but i feel pretty confident in my ability to write programs that work and aren't ugly. after 3 years.
after 10 years of playing the violin you're pretty much a novice.