...'Is that why she wants to stop people with a sense of excitement rather than historianism playing folk song?'...

I doubt anyone wants to stop people from playing anything they fancy. But folk -like it or not- is a style of music and performing. Owning and playing a mandolin doesn't automatically make you a folk music performer. And if that sounds elitist, it can also be said that just because you're a classically-trained singer, it doesn't mean you can or should sing jazz (as we have seen - sadly).

...'I loosely fit the folk area of music, have published songs and released records. What gives?'...

To avoid confusion, maybe you should bill yourself as a 'loose folk' performer. Then you can have a 'loose folk' audience at a 'loose folk' venue - though I suspect anyone would have to be pretty tight to sit through one of your sets....