Malcolm,
I am sure that if folk music was redefined in 2007,those people who defined it would give more consideration to the opinions of traditional singers on the subject.,it is quite feasible that those same people might redefine it differently today,from how they did in 1954.
The attitudes of collectors and society and the attitudes of society have changed since 1954, so many things have changed since the days of [The ManintheMoon /Peter Kennedy Scan Tester, patronising remark].
The problem is that those people in 1954 ,who made that definition,reflected the attitudes prevalent in that day,.
After fifty years and massive changes in society,I believe the definition should be given a 21stcentury evaluation,with consideration to the viewpoint of the people,from whom the songs were collected.
It should be the duty of collectors not merely to collect the songs,but wherever possible to get the singers veiwpoint on the songs,and how they define a folksong.