I have not seen much information on this subject yet, so I will ask you all...

*What's the word on playing instruments in game?

*How about grouping to play music? (such as LOTRO)

*Player crafted instruments?

I'm hoping for a resounding 'yes' to all of the above. Please provide a link if you have any Dev info on this.

As far as we know they are just emotes, whether there is any sound to go with the emote i don't know. I don't think there is any crafting of instruments or ability to play them in groups, just /lute or something like that for the purpose of visuals.