Cross-cultural (especially youth) folk musical projects - especially in cities with high levels of immigrant cultures, is a perfectly sound and sensible idea IMO.
A space for kids to both learn about, exchange, and forge fusions of, their own different traditional musics.
Can't see any problem with the suggestion myself. And while we all debate this stuff, in the spirit of err 'positivity', I hardly see just calling an idea 'bonkers' very useful..