I don't think it will have a bad effect on folk at all. I think it may spur some people to look into folk more. I know I heard a song years ago that was an alt country song that had a heavy appalachian folk overtone. I loved it so much I got to looking into appalachian folk more and before long I was in love with folk in general. If it hadn't been for that song exposing me to folk by adding it as an element to the song who knows where I would be today musically. I think it will spur thought and exploration and end up drawing people to folk that may not have came otherwise.