One of the singing morris sides in Kent nearly always did drunken sailor as part of the after dance entertainment in the pub on a stand night. It allowed the non folkies in the pub to join in and the not so confident/ competent guitar and melodeons to work on getting their chords right.

It was the song that nearly always got the biggest round of applause in the pub.

I would not expect to hear it in a folk club but bands that get regularly booked into the local pubs have been heard to do it - even Sur Les Docks - a very popular French group that often play in North kent - do a version. Horses for courses.