I think you mean "Gorillaz type bands" or something. And even that...
Live shows will certainly be impacted, but to think that you need bands to become virtual characters is kind of extreme. The Beatles were purely a studio band for much of the time they dominated. That's nothing new.
Multitrack recording has been around forever, so recording your part at home isn't that big a deal, especially now that home equipment has gotten so affordable. (note that the winner of the grammy for best engineer last year, Finneas, did it on a few thousand dollars worth of equipment in his bedroom). So much music now is created on a computer more than on an instrument, so that's becoming a big factor. Even if you play it onto an electronic piano, you can tweak to your heart's content after the fact. (and you can play at slow speed, you can play right and left hand parts separately, you can loop, you can play in a different key and transpose, etc).
You sure don't have to go full Gorillaz to do any of this. They are an interesting extreme, but beyond that....
One of the big problems, though, is that many musicians have a lot of trouble making money off their recordings, especially with so many people just listening on YouTube etc. There isn't the incentive to buy a record as there was a few decades ago.