This is of course right but I think we’re talking about general fans of music rather than those of us who are very into it?
The old model used the proceeds gained from those who were casual listeners to help boost bands who weren’t. I recall back in the Britpop days that grumbles about the Spice Girls were usually met by music industry people pointing out the profits from Spice Girls music were directly helping to fund artists on the label who didn’t make vast amounts of money.
The only way for a modern streaming system to work is probably via money from other sources supporting people producing music. I mean this isn’t meant to be a real analogue, but: if we imagine that the ‘old’ bands die out and then Apple find fewer people want their music hardware because there are fewer types of music around (because only rich dilettantes can make it) then it’s conceivable they would fund artists off hardware profits, because they need the music that people essentially get for free to sell their hardware.