I play Irish and Scottish music and back traditional song on purely acoustic instruments as I grew up in an Irish musical household and that is my background.But I have no problem whatsoever with good and interesting interpretations of traditional song using electric intruments, keyboards, drumkit, etc. A particular current example is Cara Dillon who recently released what I think is one of the finest and freshest debut albums of mainly traditional material. In fact I think some of her arrangements, apart from her beautiful voice, have breathed new life and meaning into some songs that had somewhat fallen into disuse.
Similarly I have no problem with Capercaillie, Shooglenifty, Karan Casey, Afro Celt Sound System or others who respect the tradition but bring new sounds and directions.
Best regards,
mooman