Glueman, there is only a "contradiction between a socially embedded form of entertainment being subject to academic research" if you regard folk music as being a branch of popular entertainment. It is not considered strange or contradictory for most art forms to be the subject of study or research, and for most, including jazz as well as classical music, some depth of understanding is required to get the best out of the music (although they can be simply enjoyed without that knowledge). Why should folk music be any different? And actually, even popular entertainment is now subject to academic research and analysis.

If there are "gatekeepers", they exist either to define the subject for academic study or at a more practical level to define a policy for an individual venue or event. Nothing wrong with either.

Actually, the OP makes an interesting point when he talks about folk being the blogs of the past. But the reasons he gives for people singing the songs then are the same reasons people sing them now. The OP seems to think we're all wasting our time with folk music, which makes me wonder why he bothers with it himself.