Conrad - your analogies make little sense.

No one is sitting in a little room and keeping out the "riff raff" - far from it.   Your version of the "folk world" does not seem to resemble what is really taking place, and it does not account for what actually resembles folk music.

You are searching for a solution to a problem that doesn't exist, except in your own opinion.   There are more folk radio programs available today then ever before. The audience is there, it may not be as large as other genres in music, but as you probably realize - size does not matter.