I think folks are mixing up folk music with traditional music. Folk music, in my estimation, is music written by members of the folk class, those who produce, for the consumption of the folk, and or speaking to their own interests, as opposed to classical music, often written by the folk or producing class for the benifit of the consuming and or ruling class. So, there you are, you are right in your appreciation of what folk music is, and there are those who feel as I do, folk music is our music for us, not our music for them.
cheers
Larry