I hope it does help stop these disruptive events. F1 (and other sports orgs) come in and tout that they drive business for local businesses and city councils just lap it up.
Street circuits are just boring racing, at least for Formula 1. The cars are so big these days and the circuits are too narrow to allow overtakes and competitive racing. The qualifying grid basically dictates the finishing positions.
Have you seen the layout? It's pretty close to a square in terms of design. It has a U-shaped dip in the top of it but I don't see it being super entertaining.
F1 is a little different than traditional sports in this regard.
While traditional sports (especially team-ball sports) claim that they stimulate the local economy and drive tourism, it has been shown time and time again that this is at best an exaggeration, at worse a complete lie. Most attendees to ball games are locals; in general they don't book lodging locally and they won't patronize nearby restaurants or businesses. They show up for the game, watch the game, maybe buy something or eat at the facilities directly around the stadium, then go home.
F1 is different in every regard. Fans will travel for F1. International ticket sales often make up more than 35% of the tickets sold, even in venues like Saudi Arabia or Bahrain. Race events take place over a 3 or 4 day weekend, giving the spectators more time to patronize local businesses. Most will rent lodging.
I'm not saying that they're not disruptive (they are, especially when run somewhere like downtown Las Vegas) but the way they are disruptive, the costs, and the practical upsides of an F1 street race are different than, for instance, bringing the Raiders to town.
In 2022, there were only 12 overtakes at the Monaco GP, only 2 of which were shown on the broadcast. And Monaco is supposed to be the "premier" F1 street circuit. https://www.reddit.com/r/formula1/comments/v0lmjy/all_2022_m...
I'm hoping they've designed the Las Vegas circuit to have better racing.