When I was little I always though that being famous was a merit thing. If a musician was known it was because he or she was excepcional in his/her art: an incredible singer, a highly skilled guitarist, an amazing drummer.
But then I got older and saw a lot of gigs, and a lot of disciplined and truly amazing musicians that nobody heard about… And most were struggling financially, having a side job just to get by. How come? What is missing from them that the “icons” have?
It’s just much more profitable for record labels to have a few superstars than thousands of mini-stars. A usual person won’t follow and buy from 100 music artists. They’ll buy from 1 to 10 or whatever. Having large fandoms allows you to sell more tertiary things like plush toys and shit like that, it wouldn’t be feasible to do that for thousands of artists.
Large fandoms also make people feel like they belong, when there’s a Swiftie fanclub in any small town with dozens of people there’s a community, if only 1 person in a town were a fan of a specific artist, even if there’s 1 in every town, the networking effect would just be basically nonexistent.
And in general there’s just too many amazing musicians. People love making music and as such there’s an oversupply. In addition to the above points that’s just capitalist supply and demand in play.