Damn Marty, the more you talk, the more I recognize in you a kindred spirit! You have simply and concisely (how appropriate---read on) differentiated between the two main camps of musician's: Those who play for the song, and those to whom a song's value is merely in providing a platform on which a musician may play. That's an over-simplification, of course, but I'm trying to make a point! Whatever reservations I or anyone else have about Bruce Springsteen, he is definitely of the former; his guitar playing, his arranging of The E-Street Band's parts, and the production of his albums, are all done with the consideration of how they affect the overall presentation and perception of his songs foremost in his mind.
There is a video on You Tube (or at least there used to be. I just looked and couldn't find it) with both George Harrison and Eric Clapton talking about The Band (aw geez, here he goes again ;-). George says he heard in Robbie's playing a musician with the same priority as he, that of contributing to the song itself, and to the Group as a whole. Eric talks about music having been heading in the wrong direction for a long time (not acknowledging his role in that being so!), and when he heard The Band, he said to himself "Someone has finally gone and done it". Meaning nothing less than reminding everyone of what music is supposed to be all about! I had the full quote written down it was so astounding, but inadvertently threw away the sheet of paper it was on. Gotta find that You Tube clip!
Now, there ARE some musics in which the playing abilities of the musicians is a main point of the music itself, Jazz and Blues being two of the main one's (some Jazz "songs" containing but a single chord!). The whole "Blues Revival" coming from England in the mid-60's (The Yardbirds being a major player, with first Eric, then Jeff Beck, and finally Jimmie Page on guitar) really changed the focus of guitar playing from a player's musical contributions to the song and overall sound of the Group/Band, to his guitar solo. In America, the same was happening, with Mike Bloomfield becoming a guitar star in The Paul Butterfield Blues Band. (Two quick asides: Both Bloomfield and Robbie Robertson---The Hawks/Band guitarist---were hired by Dylan for his "Highway 61" album recordings. Upon hearing Robbie play, Bloomfield demurred, moving over to piano! And Butterfield himself became a very good friend of The Band's Levon Helm, playing in Levon's band after The Band ended. He had already played with Levon in The Last Waltz).
Robertson has said that by the time The Band went in to record Music From Big Pink, he had already done the now (in 1967-8) in vogue "flash" guitar playing, and was now thinking of guitar playing in more musical terms, citing Steve Cropper's and Pops Staples' playing as his new model. Speaking as a drummer, the same was happening amongst a certain segment of the drumming fraternity. Jazz type chops had become the yardstick by which a drummer's abilities were being judged, to the point where Keith Moon, in an attempt to humiliate him, was asked if he could play in The Buddy Rich Band. Keith taught the questioner a lesson by replying "No, and Buddy Rich couldn't play in The Who".
Just as Robbie had progressed to being a musical guitarist, Levon Helm was showing drummers how to be a musical drummer (an almost oxymoron!). But he wasn't alone---Dylan had already used the great Muscle Shoals drummer Roger Hawkins (who had played on all the Jerry Wexler-produced Atlantic Records albums---Aretha Franklin, Wilson Pickett, etc. Roger was later in Traffic.) on his albums, and George Harrison would soon use the indescribably great Jim Gordon (L.A. studio session drummer, later in Derek & The Dominoes) on his "All Things Must Pass" album. This musical style of drumming was in stark contrast to the Jazz-influenced playing rampant in '68; Ginger Baker in Cream of course, Mitch Mitchell of The Hendrix Experience, Bobby Columby of Blood, Sweat, & Tears, and the ultra-vulgar Carmine Appice, who proved a player could have ridiculous chops and zero taste.
This change in drumming style was over my head at first (some guitarists never do grasp the concept of taste and restraint), and I couldn't understand what all the fuss was about. In my High School clique, there were some non-musicians who loved Music From Big Pink, and I just could not see why. I didn't dismiss their opinion of it, however, as they were amongst the smartest people I knew. It wasn't until my "Teen Combo" (as I like to call it) opened for The New Buffalo (yeah, the Buffalo Springfield, or what remained of it; only drummer Dewey Martin, though Randy Fuller, Bobby's brother, was on bass) that the light bulb went on over my head. As I watched and listened to Dewey play my drumset (a gig pre-requisite!), I had an epiphany. Oh, NOW I get it! It was just like that---the mystery had been revealed to me. I was now a convert, everything was different. Taste, economy, musicality, ensemble playing---how good musician's play!
Taste, economy, musicality---the operative words in being an ensemble player. When technical virtuosity became valued more than musicality in "Pop" music, everything changed. The ripples of that change have grown into a tital wave, the majority of players falling into the chops camp. There are some players respected in both camps---Ry Cooder and Danny Gatton come to mind. But for most players, it's like the line in The Bible: "You can't serve two masters". A player puts either the song first (or, in the complete picture, the band or group), or himself.