It's cool the way that PA systems have evolved over the years. As they developed, the guitar amps grew too. Pete Townsend went to JIm Marshall and had him build the first 4x12 guitar speaker cabs, and eventually the Marshall Major, a 200 watt guitar amp came out. All tube, the Major was a beast...and the PA systems continued to grow. Before they got clean and powerful, the guitar, bass, keyboard, etc. all relied on their own separate amps for concert levels, and the stage volume was intense to say the least. But today, the huge instrument amps are no more. The stacks of amps you see in the backline at concerts are for show. The real power comes from the PA system, and the soundman has complete control of the system (as a musician, that caused me a bunch of grief, because I lost control of the dynamics of my guitar or bass). The guitar's basic tone comes from a fairly small (typically) tube amp, usually 50 watts or less in output, maybe one 4x12 cabinet actually running. It's mic'd up and mixed out at the house board in the audience or at the back of the hall. Today you essentially have a recording studio onstage with everything mic'd up and mixed down. The drum kit alone has more microphones on it today than the whole band used to.
Done right, this gives us fantastic sound. I saw Steely Dan at the D.T.E. Music Theater in the Detroit area a few years ago, and it sounded like I was sitting on my couch at home. Amazing.
This is a great thread...keep the history coming!