Hi Jerry.
I'm fortunate in playing Trad music in real non- "folkie" settings.
I earn most of my living playing Pipes at Weddings and Funerals, I also Busk and play in an English Ceilidh band.
Most of the time I perform to "ordinary" folks.
I don't go to Folk clubs that often because I'd rather play in a Pub session, which again is in the "real" world.
I don't think the music will ever die; there's so much recorded now that it will always be available as a resource for musicians.
I see myself as a musician first and a Trad player second (though trad makes up 90 % of the stuff I do) and I use anything I like from anywhere I can find it.
People will always want live performances from real performers who mean it, so I'm optimistic about the future.

All the best PP