Steve Martin is an amazing banjoist.
I don't really understand the angst against Sufjan... Try the Seven Swans album.
Do Iron & Wine use banjos? I'm pretty sure they do.
When you inherit your banjo, use a violin/viola/cello bow across it. The sound is indescribable and, though not entirely lovely, is worth listening to. It's a little like a sitar...
Which reminds meeee. This band came to a tea house near my school and brought a ukulele, a banjo, three guitars (one with 12 strings) and a jimbey drum. They're called The Momentary Prophets.
http://www.mediaf!re.com/download.php?4tt2xpxtmcq
Give 'em a try. I think that album has SOME banjoing in it.