"So where is this 'music of the people/folk music' that you've found, 'glueman'? According to you, "both are alive", so, presumably, you should have first hand knowledge of them and you should be able to point me in the right direction.

By the way, I hope that you're documenting all of this 'neo-folk'(?)"

Here's some. I had a wheelbarrow
About three quarters of the way through this clip you'll hear a song to the tune of Old Smokey. It began one summer evening in the late 1980s when Shrewsbury Town played Notts County. I know cos I was there.

Shrewsbury supporters began singing a song in broad Salopian which the Notts fans could not recognise. It sounded a bit like Old Smokey but wasn't and the words sounded like 'I had a wheelbarrow, the wheel fell off' but weren't. A spontaneous outbreak of the song began which has morphed over the years into various Swing Low Sweet Wheelbarrow and others.

Nobody has ever claimed the song and its eruption was unplanned.
Lots more examples.