Folk Clubs, or coffee houses; really, all venues that have folk or traditional music as a mainstay, cannot afford to be philanthropic and altruistic beyond a certain point. They have to make a living to stay in business. In the end, the owner has to decide what their specific demographic wants - or will warm to - and provide a good measure of it. This keeps the doors open and affords, hopefully, some "open mike" time for newcomers and under-exposed performers.

The comment about the best venues being private ones does resonate with me. I have enjoyed some wonderful moments in homes and back yards with other musicians and friends. I offer one thought on the typical audience critic in a coffee house or club - he or she probably can't do what you're doing, so they try to bring you down in order to feel more important. Just remember, the poor souls have to go home with themselves, knowing the truth after all.