I'd posit Spotify already is an "infinite personal jukebox" for a lot of people.

We can have both. People will still want that social context, and will go to concerts and so on. But not for every song.

Things are bad already so we should make them worse?

I mean, I agree with that, but then what is the problem for AI to solve here (other than Spotify needing to pay royalties to those pesky musicians)?