It would seem that there are two ways of looking at this, one the alternative entertainment is a bonus to the festival as it adds an extra dimension, more variety etc, the other is that someone is trying to freeload on the back of all the work put in by the festival organisers. Take your pick.
As far as I am aware the camping problem has been growing for some time, with land formerly used for camping now developed, problems with flooding and no alternative close to the village. How the organisers overcome this I do not know but perhaps if there is no festival this year the shopkeepers, landlords etc will put pressure on Kirklees to add greater support to the organisers so a festival can go ahead next year. I do not Folkiedave's suggestion of downsizing will solve the problem as the main problem is camping facilities