When this idea was originally proposed that's exactly the scenario that was described.  A core of approx. 20 'seeded' riders with the grid bolstered by local wild cards.  There was no mention of a tracks being similar length to the TT course.  It's more likely they'd be S100 sized.

Question is of course, how will it be worthwhile for the host country/region?  They'll be expected to pay the DED a wedge of money and they won't be doing that unless there's something in it for them.