So the question is how do we create a space for something like this? I don't think most people consider this kind of music as a "performance" it's just the RIAA dictating stuff.

The way to enable this would require some legislation. It doesn't matter what most people consider, legally it is performance and RIAA has the right to dictate stuff regarding it unless/until the laws change.

So the way to go is by public advocacy and lobbying, not by looking for e.g. some technical solution.

Realistically this will probably spawn a bunch of small scale (i.e. single server), bespoke music bots doing the exact same thing.