I agree with @Marionville. Freddie foresees music’s losing its soul only because he has already felt his own music’s losing its soul.
There are still a great number of creative musicians around, many of them young singer/songwriters ….that they will ever die out is complete nonsense. Technology will never completely eclipse or replace human creativity and talent, only supplement it. Each generation believes that they are the golden age and rubbishes the newer one. Much as I’m an admirer of Freddie…in this respect I think he was talking arrant nonsense.
Was already nearly gone even by his time, he was one of the last few, at least in mainstream popular music. Fortunately, on the other hand, we also live in an eclectic age, and there is easy access to many a sub-genera, where you can hear everything from a sitar to a banjo, and dark age choral to Rap. It is not perhaps that music is dead, simply that there will no longer be any such thing as mainstream popular music any longer.