For what it is worth, the idea of a lot of the modern race series, from F1 down, have three primary objectives:

1) Cost caps

2) Theoretically closer racing

3) Rules so tight or one make series that innovation is discouraged.

Because of that, I find little to interest me, hence my love of historic's and classic's.

The Goodwood Revival, for pre 1966 cars, despite some well-deserved criticisms (I have a list...), at least manages to show cars both on and off track that show variety, making them more interesting and for me, photogenic.

So basically, the answer is yes, I believe it is detrimental to the sport.