Words & phrases need have different meanings, or why use so many of them? "Folk" or "trad" needs to mean something OTHER than 'singer-songwriter'. It is not in itself a value judgment. All it 'should' do is help people know in advance what the CD or concert is generally about.
I, personally, like a larger % of 'trad' than 'singer-sonwriter' music.... though I know both wonderful and mediocre instances of both.

"Folk" is just too short and handy a word, and gets 'co-opted' when someone wants to focus a would-be audience's attention.