"LISTEN, JAM, INTEREACT and just PLAY!"

I would add KNOW THE TUNES if you intend to accompany them. If you don't know the tunes well enough to lilt them then you can't accompany them effectively.

"The point is, all music is art, art is free to interpretation, and interpretation should not be governed by anybody."

All art also has a context, and much folk music is played in sessions where many of the people playing find that playing a secondary harmony with a load of jazzy chords is at best distracting, at worse downright disrespectful. Of course, in a group anything goes.

"I dont care about how folk music came to be , HOWEVER I do care what tunes express, and strumming the same shit chords that Cecil Sharp said you should play doesn't express anything to me."

Don't care how it came to be? This is a tradition, and it's past is bloody important. How can you understand the music you play if you don't have some idea of where it's come from? It's a mistake to see traditional music as some sort of vehicle for your own self-indulgence, and there are plenty of players out there who certainly do that. It's a social activity and that means taking into account some of the basic premises of the music, and the most important one to remember is the tune is the key, and at the end of the day it's the tune that matters.

I would check out some the accompanists mentioned on this thread plus one or two others: Dennis Cahill, Alec Finn and John Doyle. Also, if i could venture one piece of advice - for the time being forget the jazz chords and study the modes, accompany using the simple chord structures that provide the basis for any accompaniment of trad music and once you're familiar with them your previous musical knowledge will be a fantastic resource to build your own style of accompanying this incredible, deep music.