Here's another side of the question of whether or not performance dancing can be called folk dancing: While it is obvious that the dancing in the video in the OP has many aspects that have never been a part of folk dancing, what about performance troops who actually do real folk dancing, but as entertainment for an audience? Picture a troop of dancers from some Central Asian country that goes on tour in the U.S., playing in large auditoriums to people who enjoy cultural entertainment. Their dances are unchanged from a real folk tradition. There is no public participation. Is it real folk dancing?