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I like Karan Casey, but I've been told her pronounciation is not quite correct, at least when it comes to palatalization and 'ch' sounds. Is it true?
aye, she doesn't pronounce properly.
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What about Clannad? Altan?
Máire Ní Bhraonáin's pronunciation (she's the main singer of Clannad) is quite good but sometimes there are mistakes.
Mairéad Ní Mhaonaigh's pronunciation (Altan) is perfect.
That of Maighréad and Tríona Ní Dhomhnaill is perfect too.
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Also, what do you think about these guys
https://youtu.be/bzXswoAUi0U ?
sounds good. Normally it takes 2 seconds to know if the singer pronounces this song properly: if he/she pronounces "abhaile" as "uh-wah-lyeh" you immediately know it's bad

Native speakers don't have a ly- sound in this word, only learners do. The "l" of "abhaile" is a single slender L, so it's more or less pronounced as "l" in the English word "lip", for example.