I agree with Mike above, there is a niche for both, and it is a pointless excercise to 'bash' one in favour of the other.

I go to the Beech Singaround, which has a variety of talent, and it is always, without exception a great evening. We do not have Guests so indeed the members are the club and vice versa. Also I would have to disagree with Banjiman where he says

"Floor singers and singing clubs are great (I attend 4 Regularly) but will do little to bring more people into the folk fold."

I know of several people who have started coming to the Beech who were not into folk previously, including a French lady who has been known to give us the odd French folk song.   

I think it is a welcoming atmosphere, and the 'inclusivity' that brings in people (including newcomers to folk), not necessarily the big names.

Ged