Dear Chistopher, In America, I haven't found any lack of interest in lute or early music from the broader public. Many people who are intimidated by perceived ritual and stuffy atmosphere of standard classical concerts are drawn in by the look and sound of early instruments.
Good to hear about this. The problem is lack of support - if not outright hostility - from the "mainstream" classical music establishment. That's precisely what I have been experiencing here. In my case I feel I've been completed ignored by the mainstream players inside and outside the Academy. -- To get on or off this list see list information at http://www.cs.dartmouth.edu/~wbc/lute-admin/index.html