Who gets to say that "performing music" is of high dignity, while "giving haircuts" is of low or no dignity? Ordinarily, we in the USA let a free market decide. In the a few cases (copyrightable forms of art like music, legal services) we've allowed temporary monopolies or let a cartel set prices. Probably, Lanier is correct: making music is a hand-to-mouth existence. Probably, that's due to so many people who are able to passably strum a guitar while singing. The supply is high, so the actual market price is pretty low. Some places have "open mic" nights, and people perform for tips or beers, after all.
I think he's barking up the wrong tree.