There are no easy answers to the ol' "what is folk music?" debate. The arugument's been going on a lot longer than the 30 or so years that I've been been following it. One of the things to keep in mind is that some people's definition of folk music is an academic one relating to oral traditions while others define it by what goes on in the folk scene (coffee houses, festivals, etc,).Most people I know -- including those who know the difference -- don't really care and just appreciate good songs, good musicians, etc. without worrying too much about folk authenticity.
For example, while Folk Legacy, Sandy and Caroline Paton's record company, is primarily thought of as a traditional folk music label, they've also recorded any number of contemporary singer-songwriters like Bill Staines, Jim Ringer, Rosalie Sorrels, Gordon Bok, etc. (Of course, all of those songwriters I just named have a strong understanding of traditional folk songs.)
And try defining who's the folksinger from this scenario...
Singer A learns a song from a record and goes and sings it at Carnegie Hall.
Singer B absorbs a song from hearing his father sing it hundreds of times and he sings it in the kitchen while cooking dinner.
The temptation is to suggest that Singer B is the folksinger.
But what if I said that Singer A is Doc Watson and the song is "Shady Grove" and that Singer B is Frank Sinatra, Jr. and the song is "Strangers In the Night."
Like I said, no easier answers.
Mike Regenstreif