“A more important reason is that the bands will intuitively trust someone they think is a peer, and who speaks fondly of the same formative rock and roll experiences.”
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Make no mistake about it: once a band has signed a letter of intent, they will either eventually sign a contract that suits the label or they will be destroyed.
Steve Albini 
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The band cannot sign to another label or even put out its own material unless they are released from their agreement, which never happens.
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There is a lot of use of ProTools in professional studios, but this is mostly for the special effects it allows, not for sound quality. These special effects soon fall out of fashion, and I don't think this trend will define studios permanently.
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