In my Fairy Kingdom, portrait painting is highly prized (especially by the Queen, no surprises there really!). Photography, an idea the magical realm happily nicked from Earth to save on their powers, is taking off in my world and is seen as equally valid an art form as traditional painting and sculptures.
The main difference I suppose is that yes, there are sculptors but everyone knows that an awful lot of porcelain figures did not start off life that way. The originals crossed the Queen or Eileen or some other high ranking magical being and were turned into a statue for their pains.
Music is appreciated - classical rather than classic rock. Jenny likes both much to her mother's bemusement who thinks the latter is just a rather nasty noise. None of my magical beings would disagree with Eileen on that.
Humans who appreciate art and, better still, take part in it are generally considered to be our kind's finest specimens. This basically means artists of all kinds are despised a little less than those who have no art or art appreciation in their souls.
Art is a wonderful thing and I like it when it can come into fiction to add depth to the world created. It should never get in the way of the story or the characters but be a natural part of it/them.