I really only started to get an interest in "folk" when I was looking for an open mic, following the closure of another open mic.
the folk club alternated open mic and singaround, with guests also, which it seems were paid largely from raffle proceeds, though I think the landlord also chipped in.
I find that most young people are in the open mic scene , and I have often been encouraged by young interest in my songs.....though admittedly I am not exactly traditional folk. but I have also seen folk acts well received by all ages at open mics.
so it may well be that for interest in folk to stay healthy that the emphasis needs to be on acoustic and open mic, rather than appear specialist.

on the subject of performers using books or sheets, or these days I-pads on music stands, i think it best not to complain, unless you want even less participants. having said that, it is discouraging to see everyone else fussing about what they will do next, and hardly anyone listening.