I am a little biased because I started out racing flat track a little backwards by starting off in the Hooligan class and then picked up a flat track bike to learn the technique but I think that anything that brings new or old riders into the sport is good for the sport.
Yes, there is a vast range of talent given that there are riders that come from all kinds of different disciplines but all in all there are a lot of cool people that come out to ride in the Hooligan class and the spectators really like it too.
Adam, don't sell yourself short! How anyone get's into this sport is secondary - at best - to the fact they did get into it. And that I feel is the real value of hooligan racing in its original form. I ran across the original Dirt Quake video and shared it years ago. The next year some friends put on a somewhat, kinda, sorta similar type thing. One of them was a regular pro class racer. It was just a day for a bunch of friends to get together and have fun with motorcycles. It was a little crazy but everyone had FUN! That event continued for several years and each year it became a little more serious (and traditional) racing. One thing I noticed at the last one held. Two guys on choppers rolled in. I remembered them RACING both mini bikes and choppers that first event, maybe others. That last one though which wasn't very different from a regular district race, they walked around about a half hour, then rode away. It wasn't "FUN" anymore. It had just become an organized, regulated sporting event. I prefer a well run SAFE race, but that "fun" factor for observers was lost. Serious race fans will still come, but they'd come to any race but the original intent was to attract new fans AND riders.
I think the real solution is simply a renaming of the class. Today it is not what "hooligan racing" was. It's something else. Everyone would be better represented by a renaming. Maybe then there'd even be a place for real hooligan-style racing again?