Speaking totally as a spectator who basically doesn't play guitar, I'd have to say this is a tempest in a teapot. As Amos says, the only important thing is that the style serve the song. Obviously if the style slows down the song so that it seems labored, the style of accompaniment, whatever that style, has to change. Even if it's just an instrumental, again the main thing is that the melody flows. As to if "prissy" (obviously a negative judgment right off the bat) style puts off young folkies, you'd have to ask them directly. The chance that young folkies would be perusing this thread is likely quite small.