". . .all music is born of tradition, therefore all music is traditional . . ."

First you told us that 'Folk Music is Music that Happens in Folk Clubs' (your "Designated Folk Context" tautology). Now we find that all music is traditional. Could you possibly be any more vague?

"According the 1954 Definition, all music is Folk Music"

Not even close. 'John Henry' is a folk song, specifically a African-American folk song, according to the 1954 definition. 'Do You Think I'm Sexy' by Rod Stewart isn't.