Living folk?
It's an uphill battle, I only go back 50 years and folk has been tagged to almost every acoustic genre with a proletarian disposition. Besides, it's already splitting into anti-folk, acid-folk and so on in response to didacticism and general grumpiness.

Much more sympathetic to you on the quality issue, one man's meat, etc. Some people got their knickers in a twist over the singing ability of the Unthanks. Criticise them for being cloned folkie Spice Girls appealing to male journalists of a certain age by all means but Rachel's creaky harmonies and buzz saw delivery are the most 'real' and appealing thing about them. Nothing unfolkie there, quality and kosher.
It's too much to hope in our intertextual, reflexive, digital times that any music won't annexe its fellow travellers. Where some see dissolution and rot I see hybrid vigour. Perhaps it's just the title that needs working on.