We're not really sure what kind of system they're going to use for music as this is one of the skills least fleshed out atm (along with the rest of the bardic tree and deviant tree) as it will not be in the playable demo last we heard. However, we've been told that we will be able to compose our own music. This may be in game, or involve importing via midi files or the like. We're also not sure how playing instruments will work; if it'll be guitar hero like, random buttons etc. All that we do know can be found here with links to any sources.
I can't say that I know what systems are like in other games though as I never wanted to play a bard character before as I've always been kinda scared of the music systems in games not doing the music justice. I'm hoping that however SBS choose to implement a music system in this game though, that I don't go regretting my choice. Trust me, if I don't like the system I'm getting away from it very quickly and will do something else :D