I still frequent the "Live & Unplugged" rooms on Paltalk. Jon Freeman has it right. You have to poke around a bit to find rooms you like. There are perhaps a dozen rooms that often have folks from a list of 40-50 regulars playing. (And yes, Jon, we have missed you lately.)
There is a new beta version of Paltalk which I have downloaded. The most significant feature addition is video. While I do not have a camera yet, if someone is "publishing" you can see as well as hear them.
While the coziness of the "Mudcat only" rooms is not there (although anyone could open a private room and put the password in a thread and I am sure mudcatters would show up), there are some really terrific people there, not to mention some great talent, too. Admittedly, much of the music is kind of acoustic soft rock rather than folk, but they always seem willing to hear me sing a blues tune, or Dave the Ancient Mariner sing a shanty, or Jon Freeman to amaze everyone with a reel on his banjo.
Bottom line is open your mind and join the fun. It is very easy to set up a room. Once you do, you can pretty much "control" the content. If you want it to be folk music, advertise it in the banner as such. If someone sings/plays non-folk, simply remind them that it is folk-only. People often stop in a "live" room and try to do a karaoke number. Once they realize it is live-only, they simply move on to another room to have there own brand of fun.