A 5k on the track will never be able to compete with the experience of running a 5k on the road, for all the reasons described above.
If there is any hope to get more people involved in "hobby track meets", it would first require the popularization of shorter events for the hobby runner crowd, where the track experience outweigh the road running opportunity. I'd think a person looking to run a 400 or less (plus beer mile) would prefer to do it in a track meet setting rather than a road race setting, despite all the negatives described in previous posts. So if the 100-400 were something people would strive to train for and compete in rather than longer events, then you'd see hobby track meets.
So how do we make the 100m-400m more popular? 2 things must happen - 1) drive interest away from the longer distances 5k and up to participation in the shorter evens (plus beer mile). 2) drive interest in training and competing in sprints from the non-runners.
I'd probably start with the 2nd thing above, popularize 100m-400m racing among "non-runners". This is happening a bit with the rise of crossfit, general fitness people caring about their 400m time. the 40 yard dash could be another entry event for non-runners, with its popularity among NFL fans. Could you get a bunch of athletic people in a town that are fans of the NFL come out to a local track and get their 40 yard dash timed? maybe. Definitely if marketed right, through gyms, etc. Other aspects of sprinting need to be marketed to the non-runner athletes - ie market the 100m to 400m as being the best test of overall athleticism applying to the most sports (whether its true or not, sell it that way). Gym rats love to talk about their max bench, box jump pr, vertical leap, pull-up pr, back squat pr, etc.. Figure out what is the best track event to add to those important measures and make it as popular. Market and sell the 100m or 400m as being as an "important" measure as the vertical jump, one's bench, etc. Track and field athletes also need to be marketed as having the sexiest bodies on earth, and people would be interested in training for the events just for the correlation to sexiness.
If #2 is accomplished, #1 is easier to accomplish, moving hobby joggers down from 5k+ to track events. I think if gym rats an other athletes start being interested in competing in the 100m-400, you'll naturally have people otherwise running 5k+ road races with competitive drive interested in competing down at the shorter events. For others, it would have to be proven that the 100-400 is better to compete in than the 5k-marathon that people are currently competing in. I think the first and primary strategy would be to sell the sprints as the more healthy sport to participate in, in whatever way health is considered (improved libido, lower health disease, slowing aging, etc etc, whatever what one can come with). This may be easier to do if the shorter events start becoming more popular among otherwise non-runners. Also, the training would have to be marketed as being more fun and well rounded than distance training. Finally, the events should have to be sold as being more prestigious than distance running. It might never be a good sell to say participation in a 400m is more prestigious than completing a marathon, BUT you can certainly sell runners of all abilities that for a male, a 1 minute lap is widely known as being "better" than a BQ time.
I haven't even gotten to the beer mile and other non-traditional events. People could be drawn in track meets from all areas with the inclusion of the beer mile. How about relays? While other events going on, local running clubs may be interested in seeing how fast they can collectively run a marathon (26-mile) against each other, perhaps in lane 1-2, while the other events (all sprints) only utilize lines 3-8. Have an OCR competition on the infield.