But about the whole controlled enviornment thing, there is a city in Japan (can't remeber the name) that has a street that is closed down from 1am-3am every Friday, Saturday, and Sunday night soley for the purpose of street racing.
Japan is different from us; street racing is way larger and much more popular over there than it is here. I can imagine that that city does something like what you have said due to lack of resources to make a more secure place and overflowing amounts of people into it. Besides, a majourity of the Japanese are extremely cautious when they do street race.