While I understand the nature of the concern, I think it's always been overstated. I think you're comparing--if not apples and oranges, perhaps red apples and green apples. (Huh?)
Those with the skill (and the desire) to attempt to earn a living from music will make the try. They'll identify their prospective audience and they'll try to reach that audience as best they can, however it suits them.
Those non-professionals interested in homemade, family, or community music-making will carry on as before. I've never believed that the professional folk revival had long-lasting effect on, for example, the indigenous Mexican music played at San Antonio weddings.
Now, what people hear through the media will eventually affects the sounds they make. Over generations, the nature of a music will change. That's another (albeit related) issue. That's the folk process in the age of mass media.