"Folk Disco seems to have been a bit of a non starter.... shame really..."
Matter of opinion whether its a shame but I'm not surprised it's gone - neither had anything to offer to the other.
Regarding the urban myth that 'the folk' (after whom folksong got its name), this, from an interview with American singer Jean Richie, who collected from the older generation of singers in Ireland in the 1950s
It's from our note to a Clare version of Barbara Allen.
Jim Carroll
   
"Bronson gives around two hundred versions, and ethnomusicologist Charles Seeger edited an LP record containing thirty American recordings. The enduring popularity of the ballad among country singers and a revealing insight into how it was viewed by them, was amply illustrated in an interview with American traditional singer Jean Ritchie who spoke about her work collecting folk songs in Ireland, Scotland and England in the early nineteen fifties.
She says;
"I used the song Barbara Allen as a collecting tool because everybody knew it. When I would ask people to sing me some of their old songs they would sometimes sing 'Does Your Mother Come From Ireland', or something about shamrocks.   But if I asked if they knew 'Barbara Allen', immediately they knew exactly what kind of song I was talking about and they would bring out beautiful old things that matched mine; and were variants of the songs that I knew in Kentucky.   It was like coming home"."