"is a physically and emotionally different experience"

Yes, I agree and 9 times out of 10 I prefer unmediated acoustic instruments and voices but they do demand very intimate settings. Once a voice mic is introduced for audibility and pick ups put on traditional instruments it takes a sympathetic sound engineer to get the best out of them.

In practice some amplified instruments lend themselves better to folk than others. I don't find an electric bass too intrusive among acoustics but a drum kit or lead guitar very quickly makes it folk-rock.