I really don't see how Velveteen or Lullabye for a Weary World would be any harder for a folk audience to wrap their heads around than straight folk songs by the likes of Stan Rogers or Fred Small. Pagan Angel would be much more provocative. It really shows off your voice, but I would worry that some people might be offended by the lyrics.

I've pretty much stopped worrying about whether songs I sing are "folk" or "filk". I try to pick songs that I think are good songs and that I can do halfway well. I always pick songs that I feel like singing.