"you need to be consistent about what genuine folk song is. "
I've already done that Dave
I have never at any time said that genuine folk song can't exist alongside songs created by using folk styles as a template - in fact I have repeatedly said I believe it to be essential
I see no reason on earth why someone who can listen to 'The Flying Cloud' with pleasure can't get equal enjoyment out of say, 'Shellback' or 'The Tenant Farmer' or Leon Rossleson's 'World Turned Upside Down'
On the other hand, it is totally beyond me why traditional songs should be lumped in with poor renditions of Buddy Holly or early sentimantal tear-jerkers - or anything anybody cares to hang the 'folk' label on for personal convenience   
If you give your music a name, that name has to mean something or not only are you conning the punters but you are destroying the future of the real thing (as is becoming increasingly apparent)

The separation of traditional and non-traditional song is not necessary for the clubs (as long as they relate to one another in some way) but it is essential for research purposes
I do both - I take great pleasure in singing and listening to folk or folk-related songs and always have, but I am also deeply interested in the role that the folk arts played in the social history of the British and Irish people
I need to be able to recognise and understand the differences between the two if I am going to be able to discuss my beliefs and finding with others
Jim