As a Gen-Xer, I can only comment on my friends and my younger compatriots. I would say the Gen-Xers are split 40/60 as to whether they care about having a good TV and good speakers. Once they have good speakers, you can at least make the audio argument that they might want good sources to feed to the speakers.
However, as you know, there are sooo many entertainment options and only so much money to go around.
I wouldn't call myself an audiophile as I don't have golden ears but I rip my CDs to FLAC and stream them to various systems while converting to 192kbps preset-extreme for my ipod. I've heard the various arguments against ipods but I think they do the job for mobile systems where the noisefloor is much higher.
I'm certainly getting off the topic but the argument I would make is that the delivery mechanism needs to be streamlined substantially. Gen X-ers and Y's etc want to buy it online and in electronic format (not CD).
I will make this point again as it seems to be lost on the older generation of music executives. We want to buy it online and in electronic format (without DRM crap).
At this moment, I cannot buy the latest Alicia Keys in FLAC or even Apple Lossless. If I want it, I have to hit Bittorrent or maybe AllofMP3 and take my chances on the quality of their rip. A studio generated rip in a high level of quality for a fair price of $5-7 would just stream money out of my pocket. I would buy sooo much music if the price were fair and the convenience was high. But I don't want it to be a quality step lower than CD, it should be higher quality and cheaper.
It's not like I can't get it illegally. I can and do. But I want to buy it legally in good quality. Currently I buy lots of CDs but every time I do, I want to kill the music industry (not the musicians) for screwing me. I hit Bittorrent to try and minimize the screwing I receive.
How can an industry survive that makes me hate them every time I buy their product? The moment a better option comes out, I will jump ship. Something on a larger scale like what Radiohead and Trent Reznor did has a strong chance of working for me. A store with the well-known artists that I listen to, that gives the money directly to them and the digital download directly to me, will get my business especially if the price is fair and not a relic of a time that no longer exists.
I'm not even sure the Baby Boomers are in control of this snafu. I think it is the generation prior. All I ask, is please retire and get out of our way. We know what we want and are willing to pay for it. You just haven't figured out what it is and seem to be under the impression that we are thieves. We aren't thieves, we just hate being screwed. We perfectly understand the economic realities of the digital economy.
Apologies for my diatribe