"I thought that folk music was supposed to be fun...

I'd rather hear someone forget lines, drop the beat on the guitar, and miss 3/4 of the notes and is having a good time, than some "competent singer and musician" who rolls through a polished rendition of the same old same old."

The point is that what you describe IS NOT fun ... it's boring and embarrassing, especially when too many of the people who get up to sing are of that standard. And, again, it's not about polish it's about enthusiasm, commitment, practice and respect for the material and the audience. When someone sings well, polished or not, and the hairs stand on the back of your neck or they make you laugh or they make you cry - THAT'S fun!