Yes, it originated with Bill Monroe. No, it did not spring fully-formed from vapor and fairy-dust.

The audience here in Texas is mixed and covers the whole spectrum. A lot of them are dyed-in-the-wool Bible-beating conservatives and almost as many of them are hippies/former hippies (or that weird phenomenon of the redneck-hippie, but I'm not sure if that's just a Texas thing or if it's universal).

One of the festivals here used to give out citations for "bluegrass infractions". I was wearing boots and jeans so I didn't get one for improper attire, and I was observed using a flat-pick so I didn't get nailed for fingerstyle guitar, but I got busted for smiling while listening to the music. Oops. I think that one's pretty minor, though.