It took me many years to come to the conclusion that record stores, labels, managers, and even some musicians, are in the business to make money first, and to enjoy/promote the music second. Once I realized this, I thought to myself 'well, I can't really blame them, it's their store/business.'
    I live in Toronto too, Arnie, -I've even heard your music! (I really like what you're doing)and have probably frequented some of the music stores of which you speak. It IS pretty dismal for folks like us. I've pretty much given up on the 'majors' unless I was looking for something current, or buying a gift. Record stores just arent like they were when we were kids. You don't find yourself going into an HMV to discover new music, or to meet people with similar tastes. Those days are long gone.
    HOWEVER, as stated above, the internet has become a great tool for checking out new music, listening to stuff you might never have heard of, and (with a little detective work, just like in the 'old days') finding new and inspiring music.
    Yesterday, I received two Dwight Diller cd's in the mail, which i never would have been able to purchase -let alone hear, had it not been for the internet. I've discovered the playing of Wade Ward, Clarence Ashley, among others, just by sifting thru the 'net.
    I understand your concern when you speak of not having much of a chance to be heard when you're being bottom/back racked in the 'folk' section. Maybe you should give some thought to whether you really want to go thru the disappointment of being buried.
    Then again, what we've got to remember is that we're playing fairly specialized music, that will rarely interest more than a chosen few. ......... I jokingly label my cd compilations 'Everybody Hates My Music.... So I Must Be Doing Something Right'
Good Luck!
Joe