If you look at football, athletics, or most sports, they have events at all levels from club to national and international level. We won't see any of the smaller events advertised and they won't be on TV but it allows everyone the opportunity to be involved without devaluing the product. I think it's down to too many events in horse racing being too highly publicised and being made available for anyone and everyone to place bets. A lot can be learned from looking at other sports
Horse racing is similar to many other sports in the UK in that mediocrity is financially rewarded. Take local cricket as an example. A half decent local club cricketer who can't even get into his minor county side can earn decent money playing for a local club. I have a good friend who is well north of 40 who earns a 3 figure sum every week turning out for a Division 3 Birmingham League side. Similar arrangements exist in local football and rugby. Moderate horse racing exists because there is a market for it and therefore money to be made. If you haven't been to Dunstall Park on a winter evening where racing is followed by a pretty seedy disco then you've missed out .