An interesting article, thanks for posting the link.
I wasn't aware of Lily Dale NY. Undoubtedly that area of NY state (collectively called the Burned-Over area because of the frequent revivals in the 1800's) was the source of some of the more fringe-religions based loosely on Christian faiths, but with a twist. Russellism (early ties to Rochester NY area), Mormons (Palmyra NY area), others as well, had early influences in the region. The Erie Canal brought population and wealth to the area, and with it a lot of pseudo-religious ideas. One of Russell's early mentors (later an opponent), from whom he picked up the calculation of time prophecies, was from that area of NY and printed his magazine from Rochester NY.
People back then, without TV, Radio, sound amplification, etc, gathered in smaller groups and venues to listen to lectures, music, things that interested them. The Chatauqua Movement, though more of a social movement rather than religious, originated in the same burned-over district (still in existence). Some of the early Bible Student conventions were held at Chatauqua Lake NY.
Russell was always greatly opposed to Spiritualism, calling it out to be demonism rather than contact with dead spirits. This was a natural conclusion based on his belief in soul sleep.