Steve. I agree with both your points. For me, the best ballad singers never get in the way of the story, and neither should the accompaniment. In fact I'd strongly question the wisdom of applying any accompaniment to any ballad, unless it's a bloody good bluegrass band doing Gypsy Davy or something similar.

In fact I doubt that anyone who heard Bert Lloyd singing Tam Lin or Ewan McColl singing Clyde's Water, or the Keane Sisters singing Lord Donegal would disagree.