Glueman,
Folk is-or should be a dominant tradition, simply because of what it is - the culture of the 'uncultured'; the artistic expression of a group whose creativity, artistry and history has gone largely unrecognised and unacknowledged.
It is not merely an entertainment (though it is certainly that), but it is the expression of the majority whose history, creativity and experiences are largely unrecorded.
If I wanted to know who won the battle of Trafalgar, who were the officers or which ships took part, I would go to he history books and naval records, On the other hand, if I wanted some idea of how it felt for a farm worker, or miner or weaver to be hoiked off out of his field, mine or mill and stuck behind a cannon below decks expecting to be blown to pieces at any minute, I would have to go to the songs.   
These songs are very much a part of where I come from - may be weird to you, but very important to me, and certainly not available in any of these "more dynamic cultural forces" - whatever they may be!!!
Jim Carroll