Jim,
I can't think of a single person from the folkscene, and I must know thousands personally, who has left the folk scene because of some perception of the content. You have been repeatedly told by many people in England who are in the thick of it that the scene has changed from one centred on folk clubs to a whole range of scenarios promoting traditional and contemporary folk music. I have just come from a 3-hour concert in the middle of a big city that was attended by people from 2 weeks old (my nephew, Barney) to my 95-year-old traditional singer mother. The performers gave a wide range of songs mostly traditional, some contemporary, about half unaccompanied. The place was packed out. I'd say less than half the audience were folkies, but that's by the by.
You have definitely been deceived!! Or is it that closed mind of yours?