Just my two cents worth:

First, the term "folk music" is dated and attracts people of a certain generation... I'd change the term to "alt acoustic"... Sounds more contemporary... Just MO, of course...

Second, way too much "formula" music that has been done over and over and over and most folks, ahhhhh, musicians could play it if they had died the week before... Just MO, of course...

Third, not enough balls in it... Most lack "hooks" because song writers aren't doin' enough experimenting... There are exceptions but they somehow get lost because they allow themselves to be pigeon holed as folk musicians...

Forth, not enough crossover... I mean, people like Buddy Miller, Steve Earle, Ben Prestage, Richard Johnston, Ray Wylie Hubbard, etc... I'n not saying that all programs don't include some of these people but I'd dare say not enough...

Fifth, too many banjos... Awww, just funnin'... Just wanted to see if anyone was actually reading this???

Sixth, folk musicians tend to be snobby... I mean, I like a good head banger band, too... But those bands are considered "commoner" music by lots of people into folk... I mean, there's are some really fine songs out there by "commoners"... With real hooks and real balls, to boot...

Seventh, recording companies ain't what they used to be