Along this line, and only in region 2 AFAIK.....there were "little guys meets". These were run on 2 successive weekends (no vacation time) and were broken into silver and gold classes.
I believe they were handicapped in both classes, did the full "regional contest routine" (pilots meetings, tasking, turnpoints, final reporting, everything) EXCEPT it was not a sanctioned contest so no points on the line.
The dividing line was basically level of SSA badge until you "overflew the silver class" and were bumped into the gold class.
So yes, a glass gold pilot may be up against Ron Schwartz in his 1-26, Ron may very well win a day!

This was a good way to get started, I know, that was my first couple "contests". I believe P3 and others in the area did the same.
This was waaaayyyyyyy before "rookie camps" as run in some locations now.

I think both have a place as a starter to contests.
Part of it is, when you may not fly on a local given day, a "contest" means, "go fly, do your best".

I know several at our club (WH and others) were brought up with this mindset. While I have not flown much recently, I used to drag peeps out on a lot of days just to "go somewhere" as well as Hank and others.
Heck, sometimes I went "blasting off" in our 1-26 (sn002) prompting glass guys to follow. Figured my performance handicap would make others feel better following in a 30-40:1 ship compared to the "light wing floater".

I have no good answer to elevating contest participation.
I know there was a time that for me, work travel, family stuff (2 growing kids), etc. made it hard to go to contests.
Since then, lack of currency (my past comment that our "rule" was 40+Hrs in that ship, that season before contest day 1) was sorely tested.
Frankly, I don't do 40hrs a season now......hope to change that.

Just sorta watching to see where peeps are going with this, adding comments as I think fits.

Carry on.