Here are some ideas on what music should look like later on:
1. Dwarves should receive happy thoughts from hearing music, particularly if the instrument being played is a material/instrument-type that they like. (see 4b)
2. Music should be played only in meeting hall zones, to control noise pollution.
3. Dwarves might prefer to sit or stand (dance?) when listening to music, depending on personality/age. This could make the choice of venue (dining hall with chairs, outdoor waterfall) affect the mood of the audience. Burrow assignments could help make sure that dwarves go to the "right kind of concert." For that reason, rebellious dwarf-children should occasionally sneak out of their burrow to go to concerts, which should be treated as a crime by the sheriff/captain of the guard.
4. Dwarves already have an innate sense of musicality, which could either
a) Make it easier for them to learn to play instruments, which is not preferable, as such should be a skill.
b) Dictate how whether they receive happy/unhappy thoughts from hearing music. Great sense of musicality creates happy thoughts, poor sense of musicality produces unhappy thoughts.
Please let me know what you like/dislike, what you would change, and what you would add/subtract from these concepts.