It's set in America (in, I believe Dylan's hometown) during the Depression. It's not about Dylan or about his songs, but his songs are used.
Should American playwrights not be allowed to write about the Irish? Not to mention that Dylan's songs are known and loved world-wide.
I don't know that the play received across the board raves, so maybe this isn't McPherson's best work. But I don't see what he shouldn't be allowed to write it.