"I guess all songs is folk songs; I never heard no horse sing 'em." - Woody GuthrieThe esteemed Mr Fielding told me this debate had reared its ugly head. *sigh* Not only do it make my brown eyes blue; it also makes my ass tired. :-)
Folk music, traditional music, contemporary folk music urban folk music, acoustic music, etc.
Now look folks, and get this straight - there's only one way to handle this - it requires a minimum of 5 people, 7 is better. Gather yourselves in a good pizzaria, have a respectable quantity of cold beer at hand, and go to 'er. There will be debate, at some point degenerating into arguement. Passions will flare, but with any luck there will be no knockdown-dragouts. With fortune you will realize how much EVERYbody cares about this music we love, no matter how broad (or narrow) the parameters you apply to the term.
Go. Make yerselves crazy. Enjoy.