I agree with what you're saying Brian, but you are comparing P/D songs with cover songs. You know that a P/D song is not protected by copyright. If what I think you're saying is true, then yes Ourstage should distinguish the difference. I grew up learning P/D songs and have my own way of presenting them. As Phil said, I can record my own arrangements and register them which is perfectly legal. I've never listened to the Folk channel, but am sure a lot of P/D songs are there.
My question is, if my P/D song can be construed as a cover song, exactly what song am I covering? There may be thousands of versions out there. Ben