It's fairly clear that the term "World Music" means something different in the States from what it means in the UK. Fair enough, no reason people over there should fall in line, and vice versa.   But it's as well to be aware of that kind of thing to avoid arguing past each other.

Not that any meaning is static, since inevitably in this kind of thing you have people jumping on and off the bandwagon.

I'd assume that the term would in fact be understood in this country as including quite a range of European musics. Possibly even including some that might otherwise find themselves in a "New Age" record box in some shops. (I've always rather taken it that "New Age" means good for listening to when you're stoned, in which case that could include just about anything...)