I think part of the point Martin is making is that 'strife' -- and bankruptcy, and bad policing, and corrupt city government -- just makes everyone miserable. What affect it has or doesn't have on artists is beside the point. Artists are a very small percentage of the population, and if they need things to be falling down around them to create, there's something wrong with them. At any rate, for every artist there's a thousand people who arent artists, and they deserve better.
There might be some correlation between periods of social upheaval and great art, but it isn't worth it as a tool for creativity. To suggest that it's OK because hey, Detroit Techno! could only occur to someone from a position of privilege, who is a bystander to the strife, who can remove themselves from it if they choose. Hell, while there are definitely Detroit musicians born and raised in the city of Detroit, the originators started their musical adventures in Belleville, which is very suburban and quiet.