Two points.......
And I am a bike racing fan first and foremost,
Firstly, close racing will definitely improve the specticle, but it will not save MotoGP, and it is not the only key.
Why is MotoGP more popular than (say) World SuperSport for example. SS has some of the best racing you will ever see, with close racing and lots of overtaking, on bikes that look like they are going really fast (move around a lot, sliding, and on the limit). Why is SS not the category that most people watch, and analyse every detail of. Because the bikes are boring, conventional bikes. If there was no WSBK or MotoGP, and SS was the top category, with Rossi, Lorenzo, Stoner etc all fighting it out on 600's, would SS be as popular as MotoGP is ???? Maybe, but I doubt it.
For a pure enthusiast, SS is great racing, 20+ bikes all within 1.0sec of each other, and lots of passing, so if thats what people want, why don't they embrace SS. Because it is not the top category, it is not the peak, its not where the superstars are, its not where the money is.
As far as actual racing goes, F1 offers very little, but it is the most watched form of motorsport in the world. Why. There is better racing on any given weekend in Formula 3, with a bunch of unknowns, pulling off 'on the limit' moves, and somehow making them stick. People watch F1 because it is the pinnacle, the top, the most glamourous, the most prestigous, the most exotic, it is where the money is, it is where the beautiful people are, and it attracts the superstars. It has ATMOSPHERE.
MotoGP needs to increase the 'status' of MotoGP, and go more towards bikes that 'appear' to be exotic prototypes, not more towards production bikes. More visible technology, more expensive materials, more conceptual ideas, more radical ideas. I applaude Ducati for going to the full CF chassis, even if it is proven to be a failure - and that is the spirit of what MotoGP needs to be. Ducati also puts a priority on making the bike look beautiful.
MotoGP is structured towards bike racing fans only, they need to increase the spectical, introduce a party atmoshpere, more beautiful women, more celebrities, and bikes that appear to be really exotic and completely different to the R1 owned by the guy down the street. That way - if Pedros runs away and wins the race by 20 sec, at least people have experienced the atmosphere of MotoGP.
MotoGP needs a field of Rossi like superstars, and DORNA need to step in and help build a superstar image to the top riders. They need to be snapped by the paps with supermodels, on the back of yachts, driving Ferrari's, doing coffee in Cannes etc....... As much as I think he is a ...., more of the Lorenzo land type .........
That will bring the sponsors back.
Secondly, MotoGP needs to reduce the true costs, to attract more teams, and non-factory teams. DORNA needs to work on the business model for privateer teams to run a team profitably. A team should be able to come in, build a competative bike, secure sponsorship money (from other than bike factories), and turn a profit.
The costs are mostly in the people - not the materials. The most expensive part and the most development money goes to engines and gearboxes, and electrionics. Chassis development is not hugely expensive (ask any of the Moto2 teams).
So, leave the engine formula where it is (changing opens up a whole new can of worms). All the manufacturers are getting close to the development limits of the current 800cc engine, so the difference between top and bottom teams in engine performance is not huge and will get less and less as time goes by (and personally I don't think 1000cc bikes will produce better racing). Did the fans of F1 change when the engines changed. Did the racing get better. No to both.
Rev limit the existing engines, and take away fuel limits. Make the bikes as loud and extreme as they like.
Limit the electronics, or introduce a spec electronic package that all bikes must use. As long as the bikes look like they are on the edge, and are sliding around, electronics are not important to the image of the sport, it is not something that people see. The electronics need to be there for safety, but limit the ability for one team to get an invisible edge by spending millions of dollars on electronics.
My point is MotoGP is the top category, the pinnicle. DORNA need to build on that, expoit that, not move away from that to meet budget limitations.
Spend money on the image of MotoGP to mainstream people, who might go to the races for the party.
My opinion for whatever its worth.