My favorite flavor of US folk is the acoustic singer-songwriter variety. Here in the midwest it's alive and well, at least from the audience stand point. Those trying to earn a living doing it may obviously have a different perspective.

From a totally selfish point of view, I find advantages in the fact that it hasn't reached a level of popularity on par with country music or Pop or Rap or Rock and Roll. There aren't too many other musical genres that afford you the opportunity to see your all-time favorite performers in intimate settings for reasonable prices, and then, likely as not, be able to talk with them afterwards without running the gauntlet of security, promoters, backstage passes,etc. Jazz perhaps, shares this distinction as well. And again, from a selfish perspective, I'm thankful I don't have to pay these people what their art is truly worth to me, or I could never afford to see them.