I think that folklore should be re-opened. I think that it allowed for people to very add minor lore to GC with relative ease and it looks like it worked nicely. I do think it should be renamed slightly for a broader purpose. It should be a place for people to put largely irrelevant - but fun - lore. The stuff would have no large bearing on stuff that people get antsy about, like CRP. You could add stuff about Hylotl children’s shows or Avian food, perhaps fashion brands and publishing companies, etc etc. Fun stuff like that that doesn’t really have much of a purpose but can be used as people wish. It should be a way for people to write things for other people to use, no strings attached for either side. Like a minor lore donation. Of course, folklore should still have a place, just alongside other stuff. tl;dr revamp folklore into a place to stick player-made fluff.
If I recall correctly, that's why we closed it up. We were revamping the guidelines into something more freeform so people can post things where fact and fiction kind of blend together and break down, so people can write their own little 'legends' and stories and stuff that may or may not be true on an IC basis and give people things to search around for. Then the person who was heading the rewrite quit staff. We've got a lot of work on our plates and it's only increased due to that, so we may have neglected to communicate that since we're swamped with a rather lengthy to-do list and it kind of got buried. But we're working on it.
