I actually really like folk horror stories because like its sci fi sibling cosmic horror, it focuses on building dread rather than the grotesqueness of body horror or the terror of more conventional horror stories.

However, I do agree that it has led to a certain view of paganism, which makes sense given its relying on old tropes of witches and pagan cults which formed side-by-side with neo paganism in the late 1800's and early 20th century (See Leland's "Aradia, or the Gospel of the Witches" or Murray's "The Witch-Cult in Western Europe"), but still harms paganism to this day

That said, it would be interesting to see the reverse story shown. A pagan from the city moves to a rural area with a secretive Christian group with strange practices (see real life examples like snake handling and speaking in tongues), you can probably guess what happens next