I wasn't old enough to catch the village in its heyday, but as Jerry mentioned there was a bit of a renaissance in the late 70's and early 80's with Fast Folk. That scene flourished without a lot of interference from commercial influences - but once Suzanne Vega and Shawn Colvin were signed, you could feel the change.   I rarely go back to the Village these days, it has changed - but that is to be expected. Nothing stays the same.

A lot of "the scene" has actually shifted to places like Brooklyn and Hoboken. Some great music and opportunites to perform exist there.

I once had a conversation with Rod MacDonald about those Village days. In retrospect, he felt that they were existing in a "white ghetto" of sorts.   Basically middle class kids sharing the same interests. In recent years we are hearing more and more artists who are from different parts of the country, and the diversity and experience is creating some great music and regional styles that are not homogenized through one specific "scene".

In a way, the internet has replaced the Village. Mudcat sounds like those basket houses, except we each hear our own music.