I'm surprised nobody has mentioned the issues surrounding lapped riders. If the organizers choose an Olympic format, a few separate races are needed. This isn't a 'nice to have', but really a 'must' because our riding is mostly singletrack where passing is impractical or goes badly and leads to a racer having a bad experience.
So the point-to-point's mass start just won't work in an Olympic race with 4 or more laps. The fast guys would need their own heat, but that's ok as this is a small group that could be sent off at 8am and the main event could be the 11am heat. The fast guys will be stoked because their placing wouldn't be based on whether or not they got stuck behind beginner traffic.
Keep in mind the majority audience. The tech-trail-loving guys are but a small part in terms of #'s so their input should be considered accordingly.
Lastly, the Festival has tried to have a lap race in the past but with limited success. The cross race has all the qualities you mention - lots of laps, easier terrain but the #'s weren't there. The marketing must be better to capture a bigger audience as the cx race seemed a bit 'underground' in the months before the event.