folk is supposed to be "history"

It never has been and there is no reason why it should become so. It should be up to date and about contemporary issues and reflect contemporary technology and other musical influences as it always has while respecting and referencing historical traditions, stories, musical formats, song themes etc.

"Sanitising folkto appeal to popular culture"

Surely the popular appeal of the music is what made it 'folk' in the first place.

So much of this argument is about personal taste. I wouldn't go to see the Chilli Pipers if you paid me. But I know at least one person who has taken up learning the pipes as a result of seeing them.

I love fiddle music and have played for about 30 yrs (not always that well). My interest was forged by people like Dave Swarbrick and Peter Knight who both worked in tandem with other genres. I've now got a passionate enthusiasm for traditional fiddle music, Irish, Cajun, French, Cape Bretton but especially Scottish.

Bouzouikis v mandolins? They are different instruments for different jobs though there are some jobs that both are OK for. But mandolins don't do everything that a bouzouki do and vice-versa.