I think what Jack is saying is rather poignant as there does appear to be a rapidly dwindling culture of active participation in traditional arts and music in favour of more transient and throw-away 'music' on the whim of whatever zietgeist is currently tittilating the pop moguls that have sadly saturated the vast majority of music heard in this country.
I do, however, think that music being made by contemporary musicians shouldn't be dismissed out of hand as I believe it will eventually become part of the traditional culture - especially songs written in a trad or story-telling style as it is all capturing a little piece of history in song. Take for example the miners' protest songs - recent history but nevertheless when sung in a folk session setting very much absorbed into the genre and style of traditional music - happily sat alongside little Matty Groves and Lord Randall.
There are plenty of musicians writing in the traditional style and I'm hearing those more contemporary songs already being passed around in session and folk club circles - it's not that traditional song is finished it's merely that in some cases the paradigm has shifted somewhat in the way that trad music is being played and kept alive - you're more likely to hear a shanty in a folk club now than on a boat! :-)