Songs, like genes, live in those who carry them, and it's natural to have old as well as new strains. As the originals of Bach and Beethoven never suffered from the release of rock versions, the virtues of the old traditional stock continue despite imitation, rip-offs and Bowdlerizing. Some were terrified in the 60s that the "Hootenanny" type popularization would obscure the true tradition. Doesn't seem to have happened.
There's room (especially given the constantly widening circle of communications)for everyone. New ways of presenting songs and their ideas can bring the songs to new people, who may well be inspired to look further into the field. (For instance, I started with the Clancys and have researched my way into hard Gaelic, but I often sing translations in order to interest newcomers. That has worked well, BTW, and I *always* refer them to the originals.)
The circumstances of knowing, singing and transmitting a song change from minute to minute (you can't step in the same song twice, etc.).
I believe it's perfectly OK to encourage those who keep the tradition as well as those who reimagine it. As has already been said, that which doesn't work will die out. And meanwhile, we'll get some hot new versions!