Common folk do still create their own music, it merely has a different sound to the one that's been appropriated by 'folk music'. Technology is a completely arbitrary way of deciding typology. If that were the case folk would cease to be 'folk' the moment it was disseminated through an electronic medium of microphone, record, CD. No one denies youtube footage of Morris is folk because it's perceived through a digital format.

American rural poor black music and white music does not have the same stasis or closure that has been projected onto the folk of the UK, nor do asian or east european indigenous musics. They are recognised through form and those who want to continue with that form are folk musicians.