Technology has definitely had a positive and "expanding" effect on music, and not just modern or digital technology we can follow this back in history.

With the advent of the electric guitar we got so many new styles. Out of blues we got rock which continuously progressed forward.
In the late 70's and early 80's, punk rock would take the highly-produced, and technologically refined rock genre and boil it down to it's base. Basic instruments, basic songs, lots of energy. And also recorded in impromptu studios with basic microphones and relatively cheap 4/8 track recorders.

Audio is one of the mediums where the older technology is preferred over the modern. Vinyl is still better than digital. Analogue tube amplifiers are still better than digital solid-state amps. Overall, guitars are still analogue despite the advent of active pick-ups.

One place where technology has definitely hurt music is the actual recordings. Modern day professional music is over-compressed with loss of a lot of life in the music. Also, the digital algorithms used in recording are widely known to lose a lot of the true sound. I remember years back, Neil Young was spending a lot of money on research that would fix/replace this issue.