"The songs are 'Traditional' and are set 'way back then' when everybody's perspective differred greatly from ours"

Maybe so, but as the history of "Peggy" shows Martin Carthy and AL Lloyd modified the old song in the 1960s, Ok with me but we are now singing a song that has elements more recent than some Beatles songs!

It seems to me that nobody who posts her would sing racist, anti-semitic or songs advocating child abuse. The problem is it has a great tune and a rattling set of words, but ignore it if you want Peggy comes off much worse than the soldier.   

"Whu Oh Why does this ridiculous so called Political Correctness thing have to be raised about songs in the Tradition ?"

Most people don't want to cause offence or be seen to advocate injustice. PC is one strategy for checking out people, ideas and situations. It is about as good or bad as the people who try to use it honestly or should we just call a spade a spade?