There are more legitimate outlets. SCCA Autocross / Solo II events are a fun way to race in a controlled environment. Most courses are one car at a time, in parking lots set up to keep people under 40mph and are more about skill than speed.

People who really get hardcore into Autocross sometimes move on to road courses, buying roll cages and paying fees (or if you're lucky, finding a sponsor) to race against others on a closed track.

At some SCCA events you'll see all the legit autocrosses lined up and all the kids with their fast/furious wanna be shit rides around the outside. Once when we were going over the rules, one such car pulled in and the organizer said, "Looks like there's another one for the cardboard wing class." and we all laughed.

So at least some of these racers know about these events and just don't participate, but really these kids should be encourage to join more legit events, take on Solo II or drag racing or rally cross, and yea .. it will take some more money and time, but you'll get involved with a group of people who aren't idiots and who are responsible about their motorsports. If you do something stupid and wreck, at least you only hurt yourself and not some kid on the street.