You are correct that the market needs a music discovery and community platform for artists, and based on recent indications from Soundcloud leadership, it looks like they are going to focus more on that going forward. It just won’t be a $1bn business, which is what they were trying to build with their unrealistic strategy.
As for podcasting, it certainly makes sense. I think when they started out and they had a vision to support podcasting, they were just a little too early for the market. But I can’t see a way for them to do both a music community and a podcasting platform at the same time. At this point it seems like they can only hope to double down on what they are already known for.