OK, just trying to examine all angles here...

FOR it being "folky":
1) I could (just) imagine this song being written/sung by Lindisfarne back in the 70s
2) The singer's voice/style is somewhat folky, natural and not exhibitionist
3) It has a bit of a folksy fiddle to it

But in every other way, I can't see it as a folk number, or indeed folk group:

1) Having an acoustic guitar among the electric instruments (and drums) does not make in fact it folk (the Mumford effect mentioned above)
2) The subject matter (relationships!) while it does also appear in folk, tends to be more the domain of pop-rock. It certainly does not help identify it as "folk"
3) The chord progressions are decidedly non-folky - more like the ones used by Crash Test Dummies; indeed the whole song seemed to owe more to Crash Test Dummies than anything else. And CTD, while I love them (a lot), are not "folk"; more like soft progressive rock.

Overall, I thought the song very decent, actually quite good. And the video enhances the experience, tongue-in-cheek like, so no problem with that. It will do well - it should - if marketed decently. I could imagine it on some of the Cambridge FF stages, and at Glastonbury. But not in any folk club I have been to.

So: Good song, wishing you and them all the best, Gary, but I wouldn't call it "folk" except for one reason: In order to differentiate from the X-Factor pop and the metal-end of the rock scene, and to attract the more laid-back younger listeners. It would work, but it would be dishonest.