Traditional, contemporary, commercial, etc... all flavors that are given the term "folk" have a following here in the U.S.   

If you think "pop culture" is a phenomenon ONLY in the U.S., you should get out more! By definition "pop" music will be popular. When folk music was "pop", back in the late 1950's and early 1960's it went through so many commercial changes and divisions that we still have armed camps on both sides of the fence in 2005.

I'm not sure where you live Chris, but here in the NYC/NJ area there are a number of options available to a traditional folk music fan. NY Pinewoods always runs great events. In NJ there are similar enclaves. The late Lil Appel ran a Friday night "session" at here home where people came to SING folk songs - of all flavors. After Lil passed, others have taken up the responsibility to keep it alive.   There are also groups devoted to traditional forms of dance - contra, square, English Country dance, etc.   All forms of ethnic music carry on as well.

It isn't about quantity, it is about quality. If we had coffeehouses with lines around the block of people trying to get in, "folk" music would undergo a significant change.   I think we have it better than we realize.

I've been doing folk music radio for the past 25 years. All of the above items have led to an active "scene" which has enabled me to keep my show going. Folk music is doing very well here in the U.S.