Matt,
It would be lovely to see the Open there, but I suspect there just isn't the space, even if they pushed the length up to the obligatory 7,000 yards. I don't think there's much spare room, but then Donald Steel can get quarts out of pint pots, so maybe it will come to pass.
Our golf magazines every now and then put together a piece on potential Open courses and its always the same list:
Royal Co Down (not enough hotels/political situation/thought not to want it)
Royal Portrush (hotel shortage, apparently wasn't too well liked when it held the Seniors')
Royal Dornoch (still too far away even in the jet age, not quite long enough)
Prestwick (too old fashioned)
Hillside (Birkdale already does a pretty good job, and Hoylake is back in the frame)
Saunton (there are two fine courses and a decent composite championship course might be feasible. Fairly difficult for roads)
Royal Porthcawl (currently too short, not enough space)
Prince's (tons of space, but the course is less challenging than R. St Geo's next door)
R Cinque Ports (rather cramped and one or two weak holes)
R Aberdeen also appears in one or two lists, but it's not really a viable proposition.
There is only one Open venue (R. St George's) in the south of England and the real need for spectators is another one - and I don't think Rye wants a rebuild! Painswick it'll have to be....