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I think you've hit it right on the nail, Zeuhl - the 'industry' wants people it can make the most money out of.
It's lovely to see the gymnastic troops and dancers winning through, and I remember the sax guy. I remember saying at the time that we'd probably never hear of him again and that the only reason people went for him was because, as you say, he was a possible 'new' Kenny G (who, in all fairness, is one of the very few sax players known outside the sax or jazz world, so that's no surprise).
Don't get me wrong, I like that people are encouraged to make music in any way, shape or form, but not everyone can sing and I just wish the makers and organisers of these productions would give a little more time to those who can play instruments. Because we need to encourage youngsters to play instruments beyond their teens, but it's hard to convince them when all they see in the media are programmes like BBC Young Musician of the Year, and the brass band programme that Sue Perkins did. It's hardly cool or wicked or whatever word teens use these days.