Some of our handicap road races are run on loops (e.g. Ken Dinnerville Memorial, Mudgee), others on point to point courses, usually named for the towns they run between (Wagga-Albury, Coonabarabran-Gunnedah, or the old Nyngan-Dubbo race which I haven't seen for while). My previous club also used to run one or two road handicaps a season just for club members.
I much prefer loop courses as the logistics for riders is much easier (you can do it solo whereas in P2P to you need transport support).
The organisation of the race from an approvals POV is quite onerous here too and in some cases the Police costs alone introduced over the last few years have killed a few country opens. But the standard of pre-race organisation has improved (slowly) and like it or not, safety is probably better overall.
Handicap crit racing is popular here. The Summer Tuesday night series at Heffron Park in Sydney is probably one of the most popular, in that case just threes grades on a tecnical 2km circuit. Many neo-pros here use it for training.
And hence my point eariler about numbers, if we regularly had 400-500 entries for these races, they would defninitely all be graded scratch.
It can and does sometimes happen that the course and conditions sees bunches of 100+ riders coming together in the final kilometres of such a race. That's fun, especially when you consider the wide variety of talent in the mix.
The other thing about the track racing scene is that in race carnivals, these handicaps pit you against world class riders. I have for instance ridden in such races with riders such as Ryan Bayley, Shane Kelly, Ben Kersten, Danny Ellis, Stephen Wooldridge to name a few.
Not many sports where a club rider can compete in the same field of play with the world's best.