I dont listen to lots and lots of it, but I'm loving this current revival in the sound. I think Bright Eyes is absolutely brilliant, and I've heard plenty of other good stuff on his label as well, Conor Oberst seems to be the main man for folk these days.
I'm also seriously into Bruce Springsteens recent album, We Shall Overcome - The Seeger Sessions. Its all covers of various folk standards, some of them VERY old, done with a big country folk band sort of affair, guitar, strings, brass, accordian, etc. When its rockin its totally rollicking good time music (check Pay Me My Money Down), and you can really feel the emotion in the slower numbers. Highly reccomended...