But what I am talking about is the kind of venue in which you can see an excellent performer at close range in a relatively informal setting

I couldn't agree more with that. It was certainly the sort of folk club I was weaned on and I would love to see it back. I suspect it has mostly gone for ever - hence this thread - and whilst I for one would love to see it back run by young people - I doubt (with some very honourable exceptions) if we will see it in such profusion. Even the smallest of venues - and ones where I can remember people performing without amplification, now use mikes.

Hence my suggestion that the collapse of folk clubs can be paralleled with the rise of folk rock and amplification. I suspect that has been replaced by the workshop and that is where such interaction now happens. Since I am not a singer or musician I don't often go to workshops - others would probably know better.

Sadly, it's already seen as that by some of the older generation (evidence a-plenty on this thread) who have either lost the real spirit of the music, or never understood it in the first place

I do sincerely hope I am not included in that. I go to a session once a week, sometimes more, I go to folk clubs, festivals, and folklore events. In the past two weeks I have been to one regular session and two informal ones that arose because a number of musicians were together; one decent sized festival; and I have been to an occasional folk club to see Frankie Gavin and Tim Edey. I intended to drive 100 miles to an annual event on Whit Monday but will probably not because of predicted bad weather. Next week has three events scheduled. And I shall be at the Gate to Southwell Festival the weekend after. I belong to and attend a traditional research group. I have discovered a tradition the only the participants were really aware of and spend six weeks before Xmas each year participating in the Sheffield carols often with visitors and often four times a week. I gave up performing Morris after 30 years (probably too long) when the knees went a few years ago. With the morris I went all over Europe performing and was lucky enough to share music with dozens of nationalities.

But by all means tell me what I don't understand about the real spirit of the music. I would be delighted to know what I am missing.