The reason why it has never been popular, the prize money has been very low, if there is a prize it is in general given out as a place prize then a class prize. The other major factor, the amount of time a player is on the road going and leaving the tournament would be longer then the total time of the tournament.
The only way it can be popular is having the tournament just for the club membership. The balance of USCF members, expired USCF members and the non-USCF members at any given club depends on how strong or weak the club is. It is also a factor if the club has a active and willing director to perform such events.