"The "different settings" in my experience are anything goes singaround sessions where folk songs are included and sometimes tolerated (just)"

But as you've admitted yourself, your experience of the current UK folk scene is limited. Even if it weren't, it is questionable whether someone of your generation (or mine) would become aware of what younger people are doing. These things are largely shared via social media, and whilst they don't mean to be exclusive and anyone is welcome they inevitably tend to focus on a particular group of people and a younger age range. I only have some insight because one of my bandmates is half my age, and through him I get to know other younger musicians. They are talented, and enthusiastic about all aspects of folk, including traditional music and song.

There's a lot of folk music out there, it's just not all happening in ways you would be familiar with, or would even get to hear about. Whilst the old folk club scene is undoubtedly in decay (fortunately with some exceptions) it is developing in new ways. Just because you don't approve doesn't mean that the music is being neglected.