Oh, I should also say that traditional music is just as popular(if not more so) among younger people as with some of the "old folkies" who attend folk clubs.
Many of the latter aren't that fussy about it at all and really prefer to listen to "singer/strummers", blues singers, Americana, guitar virtuosos, and ageing song writers from the sixties and seventies. Or in some instance, they are just looking for "a night out".

It is, of course, a minority interest for young people too but this has always been the case. However, a large percentage of singers, musicians, and performers on the scene are now in their twenties and thirties.

As for not wanting to associate with people in their fifties and sixties, I don't think this is that big an issue. If the music and atmosphere is good, young people will attend a gig. I started listening to folk music in my late teens and there have always been audiences of all ages and we've got along fine. These days, I'm less keen on mixing with over sixties but that's just because I'm that age myself. ;-))