Sales of folk music in the UK last year were up 20% from 2010.

The success of Brit Award winning Laura Marling as well as the likes of the US musician Gillian Welch are behind the boost in sales.

According to the British Phonographic Industry, despite the huge lift in sales, folk music still only accounted for 1.6% of album sales in the UK in 2011. Other artists which helped boost folk music sales were Bellowhead and Daniel O'Donnell.
I guess that the more "traditional" end of the spectrum accounts for only a small fraction of these sales.
Folk is a minority occupation to pretend otherwise is self-delusion.
It is a great hobby,making music with friends,and entertaining like minded folk. The error is in trying to maintain that it is somehow central to British culture and feeling depressed when the vast majority no not share this view. John