I don't really get that far south but I suggest you check out Devon Folk at http://www.2leftfeet.co.uk/ or Flaxey Green at http://www.flaxey-green.co.uk/Pages/Welcome.html . These give a good round-up of folk clubs/sessions etc throughout Devon.

Clubs I do know about are:

Brixham Folk Club, first Friday
Totnes Folk club, second Thursday
Teignmouth Folk Club, last Thursday

Of course there's the Brixham Pirate and Shanty Festival at the end of April and the Teignmouth Folk Festival 17th – 19th June as well.

As far as my own view: I'd hate to undermine the tourist industry but there are reasons I don't go to Torquay itself, with much quieter seaside villages and Dartmoor on the doorstep I tend to avoid the ice cream and candyfloss, but it certainly attracts plenty of people so it is to the taste of some.

If you're just looking for the Southwest and folk, what about the Sidmouth festival (seaside and a full week of sessions/singarounds and/or concerts), or the Dartmoor Folk Festival (a proper "local-feeling" festival with a great line up on the edge of Dartmoor)?