I don't believe Jim's attitude is doing traditional music any favours, but no they're not incompatible. There are many venues that call themselves "folk" where traditional music of any kind is effectively forbidden, and if that was what Jim was complaining about, I agree.

Meanwhile (round here in central Scotland) there are a lot more traditional music sessions of various kinds than there were a few years ago, so I can happily ignore the nothing-before-Dylan places.