I agree with everything you said, except that #1 is clearly wrong. I can prove it with one word: autotune.
At least in popular, mainstream culture, the viewer is heavily invested in the identity of the artist. The quality of the "art" is secondary. That's how we get music engineered by committee. And it's how we get paparazzi, People Magazine, and so forth.
On the other hand, this isn't anything new at all. We've had this kind of thing for decades. Real art still manages to survive at the margins.
All this being said, I think comparing the art market and popular music markets is foolish. 12yo boys aren't buying emerging mixed-media artists. But they are picking Spotify songs.
When I buy art, I have often spoken with the artist in the past couple days, or I am aware of their history and story and how they developed their art as a response to some other movement or artist collective.
It's rare for people to buy art just bc oil paints go brrrrrm