I think that most Americans that consider themselves "folkies" in 2006 are more likely to be listening to contemporary singer-songwriters. There are very few people who discuss this kind of music on this kind of site.

The traditional audience is aging and not being replaced in equal numbers. I think in the UK there is more respect for the traditions and artists have no problem dipping into the well.   Here in the U.S., the trend seems to be the latest song that the artist has written.