Rob, one of the other issues with track racing is the number and location of tracks -- There just are not that many of them.
Many of the older, established ones have very strong communities and junior development programs. Some of the newer ones have struggled in that regard. Without the infrastructure, it is kind of hard to commit to building a large track program, like Britain has done. And while track remains a small niche in cycling, it has the potential to be very spectator friendly - European Six Day events are an example of that.
But you are right, track racing does have its issues, and many of the tracks use ATRA and not USAC.