I agree that the Council would benefit from some new staff. This would, of course, not entail knocking anyone else off of master status, I hope there isn't really is a rule of maximum 3 masters, is there? (Though Coriakin did gain mastership, and Tonle mysteriously either lost or stepped down from mastership hmm...) I just figure that the greater the number of council members, the greater the chance that someone will be around for Exile X to inquire about their bard audition, or will happen to see Exile X's numerous posts on the Sentinel/mailing list about their audition.
There has definitely been a decline in the number of people playing the game, but there are still those handfuls of new, active players that pop every month or two, and in one of those handfuls of players there just might be someone interested in writing and playing music. (Sometimes I even nab an Agratis's interest with a song in town heh!) I know that being a bard has definitely had an impact on me, I was probably in middle school when I started doodling around in Tune Helper and listening to other bards, and having that interaction in CL has subsequently changed the way I think about music. If getting hold of a master to get an audition scheduled has been an issue for people lately, I don't want that to be the reason that someone ends up losing interest in being a bard. That being said, I guess more council members to draw from would be a good thing, especially active ones (I have been playing a lot as of late, hint hint

).
From my understanding, the Council's job has only been to take care of audition planning, instructing questers and hopefuls in syntax before their auditions, and other "dirty work," and the scheduling of events/contests has been generally done by exiles and clans (i.e. WoD's Newbielympics opening/closing which was great fun, DM's drinking song contest, or Garr's all-you-can-make instrument part extravaganza). However, this doesn't have to be the case. I imagine the Council could get in on it as well, through the occasional planned event, maybe even a scheduled bard jam like Perki suggested.
Oh, and Super Chicken can be designated Official Bard Jam Party PiƱata! yeah!