Will humans ever create a live instrument that can play and reproduce all sets/settings of all notable electronic and analogic instruments, plugin and filters?

Really what you're talking about is a synthesizer.  Such things exist, they consist of a computer that is able to reproduce the sounds of any instruments (whether sampled or synthesized), and at attached input system, which is normally a piano keyboard.  The amount of memory, and processing power needed is not huge by today's standards. But, I guess you won't be satisfied just to hear that what you've described has largely been achieved with every-day hardware.  If you want to hear what the future of musical instruments is, you should consider this: the challenge today isn't about the processing capabilities of an electronic instrument: today's computer technology is more than capable of handling the reproduction of musical instrument sounds.  The challenge today is about designing an input system that can allow live performers the biggest possible gamut of musical expression possible.  The problem of keyboards is that there's no way to produce natural vibrato, bend individual notes, or adjust the dynamics of a held note. A couple of new instruments have been invented that seek to provide performers with much more flexibility of expression.  But it should be mentioned that such instruments are essentially a combination of a computer and an input system.  While theyr are a substantial achievement to produce, the fact is that they don't need the "enormous processing power" you mention, nor scale of internet collaboration that you are suggesting. The Eigenharp by Eigenlabs the Seaboard by Roli There are some really great other videos on youtube, you should check them out. Note: I'm an engineer, but also classically trained musician.  I used to like to machine my own (eastern) flutes out of aluminium tubing.  Being an electrical engineer and musician, this stuff fascinates me.

Yes. It's called a computer. :)

I think it can be done now, if someone wanted to undertake the financial burden.  The only limiting technical issue is that one would have to also design in a multitrack mixer board capability as well.  Another cool feature would to have the device change the singer's voice into musical instruments.  The thing would be beastly expensive to develop.  It would need to be fairly large, and require cooling that wouldn't interfere with the music with fan noise. If every instrument is synthesized, it would require a great many DSPs.  Sampling specific instruments would add refined tonal quality, especially if one could sample instruments such as Stradivarius.   One more musically inclined would have to write that specification ;-)