put off any new folkie who maybe "hacking through songs"

Good. So they should be deterred from practising in public. Don't play out till you can should be Rule No 1 out of respect for (a) the music and (b) the punters.

singing in a cover band to a paying audience is a completely different animal to the informal setting that is the Folk Club

No, it bloody isn't.

The mistake lies with that horrific,patronising word "folkie" (yeuk) in the first quote. Substitute "aspiring musician". Beginning to get it?
Duelling Bouzouki's new venue is an example of the way to go. Hope it turns out well.