Well, most people will be quite negative about this idea, as evidenced by the prvious posts. But, you could look at it another way. Firstly, a lot of folk festivals are folding at the moment. So people are deducing it is a lousy time to start a festival. But the other viewpoint is: folk festivals are folding, so the organisers would seem to be getting it wrong in some way. Therefore, get in with your new idea, and get it right, and you will pick up the audience who are leaving the failing festivals. Both viewpoints have elments of truth in them.
As they say, there's always room at the top. So, would I start a new festival now? Not on your nelly! But if I had a brilliant idea, well, that's another story.