lack of interest?

Doesn't seem so to me where I'm sat in Central London, indeed within a mile of where I live I can think of at least four new folk (and I mean folk not acoustic) events that have started within the last couple of years and maintained a regular audience and presence and I get the impression that there have been a similar emergence of new nights, events in other parts of the country.

Also depending on how you measure Markets but if the number of folk recordings or attendees at festivals and events is anything to go by, seems relatively healthy to me.