Hey, it wasn't just Dylan - Muddy Waters had the same experience, and came offstage saying words to the effect of "how'm I to know they want that ole guitar, that accoustic guitar".
John Renbourn started out as an electric guitarist. John James plays an electric on some gigs. Mike Silver uses more effects pedals than the average rock band, and what John Martyn does with his echoplex defies classification.
With an awful lot of folk song, the music predates almost all the instruments available. Fiddle, fife, drum, whistle, and bagpipes might be close to what was about three centuries ago, but they are not the same instruments, even so. Play what you like and let the audience judge with their feet ( put that trombone away, Leadfingers )