Just catching up on this thread and note that DtG made a good point somewhere above:

"Why is it that those who would 'Occupy English Folk Music' would have us believe that they are the liberal ones, moving forward with the times and not stuck in the old traditions? Yet not one person, as far as I cam tell, from the 'side of the traditionalists' has suggested that 'modern' folk music should be occupied, banned or replaced by something else. Yet those very liberal, fun-loving 'modernists' are quite happy with the concept that traditional folk music should be replaced."

For a start, yes, I agree, the 'modernists' are really just as illiberal as they (continually) claim that we 'traditionalists' are.

I still think that it's because an interest in traditional material doesn't conform to contemporary musical tastes or fashions. Some people are outraged by the fact that venues exist which attract audiences but don't present material which conforms to those people's contemporary, fashionable musical influences.