"That's a suicide note."
Folk clubs are just one manifestation of folk getting together to share music. The phenomenon of the folk club format is a mere blip in the history of folk music and of music in general. When folk clubs go the way of parlour gatherings or glee clubs it will be because they are no longer relevant to folk.
If folk clubs are reverting to a place for musicians making music for each other then that is a return to the roots of folk music, and far less a violation of their trade description than being a venue for professional and wannabe professional musicians to earn their crusts.