There was maybe an element of that. But in the main, I recall the reason being that the event itself, by it's very nature of being fast and furious, was deemed to be too dangerous. It was staged on the West Shore for years in order that the event could be held between the two sea walls as it were, hence when it was moved to the North Shore, barriers had to be used instead of the walls.
I remember Brian Lawson (the guy who owned the company that tarmaced the prom) saying to me once during a round of golf at North Wales G.C., that a Jumbo Jet could land on the prom several times a day and it would be OK. The line of bricks you see on the prom on the seaward side was his idea and the Council went for it (V>B>G).
I recall it was Ian Turner who was told by Aberconwy Borough Council that he would not be allowed to crawl on his hands and knees along the prom in order to try and break the world crawling record, because he would damage the surface of the prom and he would also be disturbing the hotel guests. His response was that his knees did click a bit now and again.