Jim, I'm still confused, as indeed you appear to be!

'"so is this an acknowledgement that there can be new folk songs,"
Why - your train of logic totally escapes me?
What has oral and written transmission have to do with the creation of folk songs - which concerns acceptance and re-distribution?

So, you've just said very clearly that to be 'accepted' as a 'folk' song, a song has to be transmitted and re-distributed orally, in which case, surely oral transmission has everything to do with the creation of a 'folk' song, but then when I paraphrase what you've said about oral transmission, you come out the the blinding statement 'You are on your own on this one - it has long been acknowledge that this is not the case and you are the only one I have heard to suggest it in a long time. and then in the very next line, tell us that the 'folk process' has stopped.

Is it any wonder that certain people have become irritated if you can't be consistent with your own arguments?