The Band were not all alone in their musical direction. There was an entire underground counter-Counter-Culture taking place, rejecting the psychedelic style and substance that was in style in 1967-68 for a more "organic" music. Bob Dylan turned his back on the anti-authoritarian movement he was largely responsible for creating earlier in the decade, and his December 1967 album John Wesley Harding, his first since Blonde On Blonde, was a complete musical about-face. A very quiet, rural-sounding album (recorded in Nashville) featuring mostly acoustic guitar, electric bass, drums, and pedal steel, with lyrics containing Biblical references, it stood in stark contrast to the bombast taking place in Rock. I had NO idea what to make of it. Until I "got" Music From Big Pink, that is.
There was also the new, very Country version of the Byrds, new member Gram Parsons taking David Crosby’s place and essentially leadership of the group in 1967. Gram was brought in by Byrd’s bassist Chris Hillman, who knew him from their Bluegrass days in New England. Everybody I knew had their Sweethearts Of The Rodeo album, and loved it. Parson’s and Hillman left The Byrds after that album, starting the hugely-influential Flying Burrito Brothers.
Buffalo Springfield had a hit right out of the gate, with the classic "For What It’s Worth" single. Member Neil Young was, like The Band, a Canadian, and was extremely impressed by them. As I have said previously, his Harvest album is obviously his response to The Band’s brown album.
Then there was Dan Hicks, who almost openly mocked the overblown music that was most popular in the Rock world. Great songwriter, much more clever than Frank Zappa, another satirist who mocked Rock and the Hippies who were it’s audience.
There were lots more great underground-level artists working in the field planted by Dylan and The Band, but there were also hugely popular artists emerging who were making more "musical" music. Jackson Browne, Carole King, James Taylor, people like that. The whole singer/songwriter thing, which is not really the same as The Band and their ilk. Still, better than some more 10-minute guitar solo bands ;-) .
You may notice that the music being made by the people I’m talking about is very much Country and Folk Music-influenced, or even derived. The music being made by most bands in 1967-68 had become more Blues-based. The Band very much had Blues roots, but that wasn’t very obvious on Music From Big Pink. Whereas most bands were playing music in which the Country element in Rock 'n' Roll (Elvis, Buddy Holly, The Everly Brothers, Carl Perkins, Jerry Lee Lewis, Johnny Cash, all hillbillies who played Country before Rock 'n' Roll) had been completely eliminated, The Band put it back in.