I agree with you, but removing technology arms races from mainstream sport is a lost cause. The controversy around Nike's carbon plate in running shoes, and Speedo's polyurethane mix fabric suits show that not even the simplest sport are safe from it.
However... there are still a few niches.
> Maybe there is a market for racing and events where you're only allowed steel-framed, canti brakes, SiS index shift monstrosities? Like one of those sub-$1k car rallies or something.
You've kind of just described Keirin [1], as a philosophy, if not the specifics. The Secret World of Japanese Keirin Racing is a good introduction if you're curious.