AT would certainly do better with recruitment if there were venues where a total newcomer (3-4 classes) could participate and feel welcome. Practica is not a satisfactory solution, because everybody understands that to be "not the real thing."
The real trick is finding a way to make beginners welcome while still incentivizing them to improve. Bonus points for consistently showing evidence that they are not "intermediate" yet (people are rarely as skilled as they think they are) without making that reminder discouraging.
In the end, I don't think ANY purely-social social dance community achieves that. IMO, it requires some sort of deliberate structuring, and that structure needs some kind of centralization in order to scale. Even if just locally, where there is some prominent person/org/club that folks recognize as "the ones that make things happen." Decentralized efforts at this, like leveled encuentros, just end up looking cliquish and gatekeeper-y, even if that is not at all the intent. At the whole-community level, it becomes a choice between welcoming beginners or incentivizing quality--pick one. Club Latin and Social Ballroom do the former, and AT is firmly focused on the latter.
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Ironically, competition *does* offer that helpful structure. The leveling systems mean that you can have newcomers and literal world-champion professionals together in one event, feeling welcome and comfortable while also knowing where they stand.
This is actually one of the things that gave me confidence back when I was a talentless beginner: yes, I may be bad at this, but I can be sure that everyone around me is, too, so I won't look out-of-place or embarrassing. And I know I won't be getting in the way and bothering the advanced dancers, because they just got off the floor. And and, I can clearly see how far I have to go, because I know their level and can closely watch what they do. Oh, hey, and that advanced leader I was admiring five minutes ago is cheering for me! Cool!!
Having said all that...from a social community perspective, I think Ballroom does not do this well, for many reasons, and this is why the social and competitive communities there are strangers to one another. But I think that West Coast Swing does a pretty good job striking a balance. I would say that all of us can learn something from how they do things over there.