I feel like the newer (ish) tools such as Strudel, and also this here Loopmaster, have a much better toolset for producing stuff that actually sounds great (vs just purely the novelty of "look im coding beats"). Like, Strudel comes with an extensive sample bank of actually quality samples (vs relying on synthesis out of some sense of purity), and also comes with lots of very decent sounding effects and filters and the likes.
Combine that with the ability to do generative stuff in a way that Ableton, FL Studio or Renoise are never going to get you, I won't be surprised if people invent some cool new genres with these tools eventually.
Basically, your comment reads a bit like saying demoscene makes no sense because you can make any video better with Blender and DaVinci Resolve. And this obviously isn't true given the sheer overload of spectacularly great demos out there whose unique esthetic was easy to obtain because they're code, not video. (find "cdak" by Quite for an on-the-nose example).
I'm going to be surprised if this new wave of music coding tools will not result in some madly weird new electronic music genres.
Obviously there's plenty of stuff these tools are terrible for (like your example of nuanced instrument parts), but don't dismiss the kinds of things they're going to turn out to be amazing at.
Sure it might be cool to use cellular automata to generate rhythms, or pick notes from a diatonic scale, or modulate signals, but without a rhyme or reason or _very_ tight constraints the music - more often than not - ends up feeling unfocused and meandering.
These methods may be able to generate a bar or two of compelling material, but it's hard to write long musical "sentences" or "paragraphs" that have an arc and intention to them. Or where the individual voices are complementing and supporting one another as they drive towards a common effect.
A great deal of compelling music comes from riding the tightrope between repetition and surprising deviations from that scheme. This quality is (for now) very hard to formalize with rules or algorithms. It's a largely intuitive process and is a big part of being a compelling writer.
I think the most effective music comes from the composer having a clear idea of where they are going musically and then using the tools to supplement that vision. Not allowing them to generate and steer for you.
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As an aside, I watch a lot of Youtube tutorials in which electronic music producers create elaborate modulation sources or Max patches that generate rhythms and melodies for them. A recurring theme in many of these videos is an approach of "let's throw everything at the wall, generate a lot of unfocused material, and then winnow it down and edit it into something cool!" This feels fundamentally backwards to me. I understand why it's exciting and cool when you're starting out, but I think the best music still comes from having a strong grasp of the musical fundamentals, a big imagination, and the technical ability to render it with your tools and instruments.
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To your final point, I think the best example of this hybrid generative approach you're describing are Autechre. They're really out on the cutting edge and carving their own path. Their music is probably quite alienating because it largely forsakes melody and harmony. Instead it's all rhythm and timbre. I think they're a positive example of what generative music could be. They're controlling parameters on the macro level. They're not dictating every note. Instead they appear to be wrangling and modulating probabilities in a very active way. It's exciting stuff.
For now you can see how it's done here[0] on line 139. I pretty much use it on every other track I've made as well.
[0]: https://loopmaster.xyz/loop/6221a807-9658-4ea0-bfec-8925ccf8...
It's still clipping terribly in my browser