You're right, there's loads of prog being made these days. Getting audiences to go see it is another story though.
I'm currently working my way through all the cover CDs given away with Prog magazine. Some of it is amazing, some less so. Favourites so far: Motorpsycho, The Fierce And The Dead, Trioscapes, Hedvig Mollestad, The Grand Astoria, Mumpbeak, Schnauser. And I'm only on Vol 20 so far. (I could add others like A Formal Horse, Elephant9, The Far Meadow, aforementioned Knifeworld, for example)