the folk process

[cosmusic]

"My dad used to steal tunes from other people and write new words for them. People called it stealing, and all sorts of other bad words. Until Pete Seeger came along, and gave it a name: the folk process."
  -- Arlo Guthrie at Falcon Ridge this evening

A couple of days earlier at the same festival, a bluegrass band from Georgia started introducing a rearranged cover they were about to do with,

"This is a song we first heard on YouTube"

How is the Internet affecting the "folk process"?