There are two local folk clubs that I attend, principally as an audience, and sometimes as a performer (Guitar/sing).

One club actively encourages anybody who wants to use crib sheet to do so, it even provides a music stand - with a light !!!!.

The other club discourages, but allows if must be, any music crib sheets, but provides nothing to hold them, so very few people use them.

I perform, from memory, at the club that doesn't encourage sheets, but infrequently, due to time taken to practice really well to remember (short term) the words.

I perform at the other club a lot more frequently (Grammar ?), and can use a far wider range of material, which I do.

My playing policy is not to repeat any song, so both clubs hear different songs, but when I count them up, they are a lot of songs.
I would not be able to do most of the words, from memory, and therefore I would not perform at all.

I enjoy both clubs, which is the main point of visiting the clubs, but the music stand club has a far wider performance range of performers, because everybody of all standards is actively encouraged.

The audience at both seem to enjoy both, without any worry about the ethics of reading from crib sheets.