I think contests are great fun. They have a special feel about them.
The problem comes in a couple of ways.
There are not enough contests close to 99% of the fliers who would like to try it. It may be great fun to head out of town for a big weekend, but most do not want to spend $400-600 a weekend and to drive 4 hours for 4 flights. At least not starting out. You live in a contest zone, you have it easy.
It eats up club time. Because many clubs dont have any kind of competition, the membership does not want to give up a weekend. Sometimes when a club has a competition it arranges for its members to fly at another club for the weekend, but you have to be able to pull it off.
Some kind of incentive from the AMA for clubs to have some kind of ruled competition. Some clubs might be pattern some might be scale, pylon, helicopters; if more opportunities were around, you might find a place to fit in close by.
Have some kind of low key events during a normal club day. What if contests could be split up at the local club. Say there are some Sportsman and Intermediate fliers at the local club; maybe 5 guys or so. How can they have a mini contest with points that count?
On cost of contest again, what if Sportsman was free for someone up to 2 contests. Getting over the stage fright is one of the first things; having to pay to have stage fright is no fun for someone new.
Sportsman equipment is a big deal, but penalizing anyone for it is tough. I think if enough non or low end pattern planes show, run a separate class of sportsman; A and B. Let the pilots chose if they want to be in a pool or keep 2 M separate.