Played the Monarch Dunes challenge course recently. Had both size cups in their 12 greens (it's a 12 hole par 3 course, but not pitch and putt, the back tee yardages range from 120-240 or so and the greens are designed equal to their full course, not downsized or simplified.
Great fun. As mentioned above, a wedge in, a few chip ins, and more long putts made. My take was it was more of the kind of shots that bring golfers back.
While traditional golfers may never like it (although, if I liked it, I suspect some or many others will too) new golfers will probably like it more. And, getting new golfers in the game is the only strategy really in play here.