These things go in cycles. When I entered the industry as a recording engineer back in 1981, a guitarist couldn't get arrested, much less a job. Jangly MIDI keys (Yamaha DX7) were the "latest thing" in music. In the mid -80s Eddie VanHalen brought back a bubble. In the early '90s Grunge brought back a bubble. At the end of the '90s, the return of the bands from the '70s brought back a bubble. Starting around 2010 Americana has brought back a bubble. We'll see about long-range trends. I'm still playing sessions so someone is still using guitar, and specifically, electric guitar.
But I agree about one thing: there are no cultural "guitar gods" anymore, and music is now a secondary influence in society. When you hear it, it is always tied to something else - visual arts, dance, performance arts, documentaries, etc. And that is exactly where the work is coming from for me.
Bob