Doug,
In fact, the four days of the 2000 Irish Open held at Ballybunion were each as benign as I've ever seen!
Anyway, given how much of a struggle it was reaching agreement to host this event, I strongly doubt one could ever get the club to host the British Open.
The key sticking point was how many people would be let on the course. Ballybunion wanted to limited the total to around 3-5,000. Murphy's, the sponsor, asked for about 12,000, if I recall correctly.
In the end, there were unconfirmed reports of around 15,000 for the weekend......and as the opponents of hosting the event were forced to concede, things turned out fine. Damage to the sand hills was really quite limited.
Still, an event much larger, would be too big for Ballybunion, in my opinion.