Reinterpretation of current/past popular music in traditional style, within the limitation of traditional/acoustic (and perhaps solo) instrumental constraints, is a definite part of the "songster" tradition:

Examples:

Mississippi John Hurt's "Creole Belle" (and undoubtedly several others currently slipping my mind);

Dave Van Ronk's "Would You Like to Swing on a Star," "Teddy Bears Picnic," etc.