I think it's a great idea. I was on a server last night on the city long track just cruising at like 40mph and was having fun. I think "free" server would be great.
Every track pretty much has an area where you can pull to the side and park, that could be a skinning/discussion area, then people can either cruise the track, test setups, or race around it. Hell, there's even a parking lot track.
As long as everyone is civilized and not ramming each other, it should be pretty cool. Maybe we can even form a group and set a website up. I have a decent connection which can usually hold full servers nicely, but maybe we can look into getting a legit server.
Maybe i'm thinking too far ahead but I think it would be a great idea to hang out and spend(waste) the time :P Sometimes I want to mess around in LFS without racing, but doing it in single player gets a little boring.