I welcome people organizing events that better suit their tastes. As a Worldcon regular and conrunner, I can be annoyed that Dragon*Con draws 40K people and has a negative impact on Worldcon attendance because there are people who would attend both if they could, but given a forced choice go to D*C. However, I think the organizers did the right thing by their lights: they organized an event that they wanted, and they're getting from it what they want. There's no denying their success.
So a word to anyone who thinks the local "literary" con is stuck-up and snooty and won't do what you want: If you think it can be done better, try it! You may even be right.