You hit the nail squarely on the head.

When I ran a hobby shop a few years ago, I definitely could not count on 2 local clubs to stay in business. Most customers who came in the store did not have any interest in RC aircraft, but were simply curious to see what I was selling.
I asked everyone who came in if they would like to fly, but not necessarily buy RC airplanes. 99% claimed that if they did fly, they would most certainly crash. So I suggested they come out to our flying field, which was a couple of miles away, just to watch. If I offered to let them fly my trainer, most would totally reject the idea. Once I got the plane in the air, I would ask them to stand next to me so I could explain how easy it is to fly RC airplanes. Then I would hand them the tx (no buddy-box), and tell them to put their thumb on the aileron/elevator stick and not move it at all. My LT-40 was trimmed out to fly in a large circle by itself. With a simple small left or right stick movement command, my new unknowing "student" would be able to fly for at least 20 minutes.

That is how I was able to keep my doors open for several years.
I tried to share this promotion/training method with other club members and many related businesses, they showed no interest what-so-ever.

Even though the industry and AMA has spent millions over the years with their promotions and ads, but so many RC related businesses has been going under, like Hobbico, JR, etc. Your point has been proven many times over. You have to provide a very positive RC flying experience, much like an auto dealer.
Imagine if one auto dealer didn't allow customers to take a test drive and another dealer went out their way to let customers do so, even take a vehicle over night. Which one would sell more vehicles?