Mark,
I think your approach, stressing assessing the community benefits of a public golf facility in totality, are bang on. If the ground is utilized properly and other uses can be integrated into the physical structures on-site, it can be a great asset. Few open space options exist, that properly managed, can provide the type of revenue that a golf course can. The key words being "properly managed." There also can't be an oversaturated market, or simple supply and demand will hurt profitibility or even break-even potential. The most important contribution of golf, particularly in urban ,or high density areas, is the preserving of greenspace and nature, provided it is responsibly managed from an environmental standpoint.
To me, one of the grest missed opportunites of the recent financial meltdown, was the terrible government exclusion of any funding for revitalization projects, for already existing municipal golf facilities needing help. Funding allocations in this area really could have provided job opportunities and re-energized outdoor enjoyment and recreation of many communites, particularly the youth and older folks. Many solid courses, with good bones, have suffered from years of poor maintenance and lack of capital infusion. With good oversight and planning, a lot of good could come from such efforts.
There has been some regional success, but without financial muscle, nothing of an impactful, comprehensive nature can be realized.
Sadly, the industry and administrative bodies of the game totally missed the boat on this, and in a belated effort to better serve themselves...eerrr...the game...hired a lobbyist firm to help better convey to government the message that they're really a great industry and business. Nice one fellas. Try walking the walk(literally as well) a bit better and you'll have more support, especially from non-golfers.