"first boat in each division wins his/her division."

That's all well and good. BUT...the point is your stated objective.
"You want serious hard core racing up the coast... Go ahead and out-run me...but do it with your talent and skill. "

Is trumped if I have the faster ride.

There are lots of options for the race that don't include handicapping.

As Carl suggests you could start open an hour later.

It all depends on what kind of race is desired.

Having run these things with out sponsorship money... I know that attendance is the number one factor. So... what rule do you think will gin up the most boats year after year.