"Early Morning Rain
My Ramblin' boy
Last thing On My Mind
Blowin' in the Wind
Where Have all The Flowers Gone
Puff The Magic Dragon

Written as commercial music or became folk music known by many because it could be related to by many? "

Technically, they are NOT folk songs - but I do happen to agree with you that "folk" is a term that has morphed with the times.

There are plenty of songs of that caliber being written today.   I am 52, but I happen to think some of the finest "folk" songs are being written today. Are they as POPULAR as they once were? No, but that has NOTHING to do with the music. Blame it on Clear Channel and the commercial entities that have sunk their claws into the "business".

"A cop out because it is no longer viable to a general audience in standard venues as clubs, concert halls, etc."
Not a cop out at all. It is a reality and it keeps the music viable, but not commercial.

There is a line drawn in the sand between traditional and contemporary, and if you throw in commercial, you have a weird triangle with everyone stareing at each other.

The fact remains, FOLK music - both traditional and contemporary singer-songwriter variety, are alive and well and perhaps stronger than ever. The music does not need to rely on a cash cow or filling arenas to survive - quite the opposite.   The folk revival nearly killed the beauty of the music and came close to reducing us to drippy songs that tried to emulate something that never was.

Don't write the obit for folk music, as Woody Guthrie said - there will always be folk music because theres lots of folk.