I understand your point Eric.
I still think there should be clubs that accomodate beginners, but at the same time there should be clubs, that encourage the better performers, or performers who are ready to move into the floorspot situation.
Once we stop arguing over that situation, then we all move on and recognise each club for the value that they give to the folk world.

In my simple world, I see the following (I know a few won't agree) :-

Feeder clubs that encourage beginners as well as singers who are reasonably good or indeed very good. They are the nucleaus of the folk world.

Support clubs that allow artists to develop their skills at a higher level by doing floor spots of 10 to 40 minutes depending on their level. I believe these clubs, should take care to ensure that the artists are capable of performing in front of a listening audience.

Top Artist Clubs. as it says.

I also believe that you can do a mix of above but have to take great care about the listeners.