^ Comte de Geneve, your TL of USAC hanging on is a bad idea, simply because USAC wasn't taking the sport anywhere. CART was not originally planning to destroy USAC's Indycar series, they wanted to work together, effectively with CART as the promotional body and USAC sanctioning and running the races, similar to the Relationship between Formula One Management and the FIA. That civil war was not started by Penske, it was started by the guys at Indianapolis Motor Speedway. CART and USAC came to an agreement, which resulted in the Championship Racing Association being set up by the both of them for 1980. Indianapolis Motor Speedway immediately told USAC to kill it or they would find somebody else to be the sanctioner for the Indy 500. USAC killed the league as a result. (Rick Mears was the only champ of the CRA, FYI.) USAC simply didn't have the personnel or knowledge to promote the series as CART did, and as a result its Indycar series folded in July 1981.
If you keep USAC on board, all you do is add to owner frustration and add to the perception that the only race that matters is the Indy 500. Even the IRL, which Tony George founded specifically to wrest control of the series from CART, now knows well that you cannot make a series where only one race counts. If that is the case, why do the others? Indy would be a lot smaller without the series, if it still existed at all.
The best POD for an equal Indycar and NASCAR series I think is 1993. Tony George's first attempt to get influence with CART was best described as foolish, but CART's ignorant, self-absorbed response added to the problem. What Tony George should have done is used his wealth and influence to beat the CART owners at their own game. The perception that the CART owners all hired foreigners is BS - the 1990 Indy 500 had 24 Americans from 33 starters, and Arie Lyeundyk was only the second non-American Indy 500 winner since the 1960s. The names were all there - Mario and Michael Andretti, Bobby Rahal, Rick Mears, both Big Al and Little Al Unser, AJ Foyt, Danny Sullivan - and the sport was still huge. There was a raft of talent from the US that arrived in open wheel racing in the early and mid 1990s - Jimmy Vasser, Robby Gordon, Bryan Herta, Tony Stewart, Scott Pruett, Buddy Lazier - and as Emerson Fittipaldi proved, it is possible for a foreign-born star to exist. Paul Tracy and Mauricio Gugelmin were proving that point in 1995. The best POD I think would have been for George to get into the game as a player in 1993 or 1994, bring in his buddies (John Menard, John Barnes and Gary Pedigo, Tom Kelley, Jack and Allan Pagan) into the Indycar Series as owners. This would undoubtedly give him considerably influence within CART. Yes, Jeff Gordon came and didn't get a ride. That was because he was jumping from sprint cars directly into Indycars. That is a massive jump, and one team owner (Bruce McCaw, owner of PacWest Racing) DID offer him a ride if he proved himself in Indy Lights first. He got a better offer from NASCAR and went there. His choice, don't have any hate for him as a result, but going from Silver Crown cars to Indycars is changing from brute force, front-engine, steel frame, sideways-sliding dirt track racers to highly-sophisticated, mid-engine, carbonfiber monocoque pavement racers that tend to not work well when driven sideways. There is a reason why lots of dirt-trackers tried Indy during the IRL days and most flopped. Tony Stewart could have been kept as an open wheel racer if John Menard was willing to pay him what he was worth. As far as nobody watching open wheel road racing, I know from a lot of experience (race fan going back to first watching race cars at the 1984 Canadian GP, first Indycar race was Toronto's debut in CART in 1986) that the fan base for short trackers isn't much bigger. In both cases, its guys doing it because they love to race.
As far as oval racing always being the better show, that also depends on the rules and the tracks. No two tracks are alike - Nazareth and Dover were poor races, but Milwaukee and New Hampshire have put on incredible shows. Likewise, Kansas City, Atlanta and Fontana were frequently duds, Kentucky was just average....but Chicagoland, which is almost identical to Kentucky, was usually awesome. Likewise, Mid-Ohio is not suited for Indycars because its too twisty. Road America and Watkins Glen were usually excellent. It's too simplistic to simply say ovals are better. That also somewhat applies to street circuits - Belle Isle and the Meadowlands were never much good, Toronto and Vancouver average, Long Beach and Cleveland usually very good indeed.