From what I've seen many of the festivals that have been in crisis have been at maximum capacity anyway, so encouraging more people to attend is not solving the problem.
Festivals have been hit by increased insistence on insurance,health and safety being tightened up(With extra costs) and councils pulling grant aid at short notice.(In one case I know of the council pulled a grant then gave it back when it was too late to make proper use of it.)
When at one time festivals could be run by booking a few acts and a camp site, it's not surprising that people are wary of getting involved in all the red tape that now exists.