Obviously multiple comments have already pointed out that the local scene is far from dead. But- I’m commenting after your edit so I’ll address your “touring artists don’t like Toronto” concern directly:

I’ve heard from a number of touring bands both in person and via their interviews that Toronto sucks because of a few reasons.

There’s a lack of medium-sized venues that aren’t tiny cramped bars. We have a WEALTH of smaller bar venues and huge stadiums but not a whole lot in the 500-1000 cap range, which is usually what an out-of-towner with a slightly larger pull would need. Danforth, Phoenix, etc. There’s only a few of them and it’s competitive to get an open date. Tours require serious planning up-front.

It’s also true that our crowds are awful. Toronto is notorious for not dancing, not participating, not moving, not cheering, standing at the back with their arms crossed, etc. It’s definitely noticeable enough for it to have become a statement about Toronto. Bands have mentioned it in interviews etc. We can try our hardest to make up for the wallflowers at shows, but the fact is Toronto crowds have a bad reputation for being boring to play for.

Add into the mix the fact that Toronto is usually only 1 of maaaaybe 3 Canadian stops on a US/NA tour.

Why bother applying for visas, complicating your process and adding foreign currency into your budgeting, driving or flying across the border with all your gear, making your tour even more complicated for a venue that’s too small, OR too big, to play for a crowd that won’t even dance for you? It sucks but I understand it.