There are plenty of young musicians performing excellent music, they are just not (on the whole) doing it in the folk clubs. They don't want to be part of the turgid and boring folk scene that far too many clubs have turned into, and which are inhabited largely by people old enough to be their parents and grandparents - any more than we did when we were young. They are finding their own opportunities and venues to perform, including festivals, house concerts and the more vibrant folk clubs which still maintain good standards of performance.

Just because you don't see it doesn't mean it isn't happening.