As with any king of racing, rules limiting equipment will have different effects on those that chose to race.
By limiting it to production boards, i think there is an effort to limit the arms race going on between riders. A further limitation could be a box rule limitation, an example of which would be limited length, width, fins, fin size, and potentialy, kite size.
I think looking at kite racing it makes a degree of sense to look at windsurfing racing.
In terms of course racing kite boarding mainly resembles the formula windsurfing class. Both have followed a trend for wide boards and high aspect fins, high travel costs, high equipment costs, and a style of riding that does not resemble the majority of the sport. These factors severally limit participation in organized course racing due to average joe's not being about to afford to race, not having racing nearby, and not wanting to learn what amounts to a new sport.
I say this because as an avid sailor and racer, these factors are what prevent me from entering kite racing.
Unfortunately, this is the only real tactical racing outlet for kiteboarding.
Windsurfing, like sailing, however has successful one design classes. If the racing equipment is sevearly limited to one model it prevents the arms race that leads to more and more expensive and unwieldy equipment. Furthermore, it makes equipment more of a long term investment because you know your board will still as competitive as they day you got it years down the road.
This would allow more average kite boarders and those of more limited financial means to get into racing. It is a formula that has worked for dozens of one design sailing and windsurfing classes.
I'm not saying a box rule class or unlimited class shouldn't exist and the best racers shouldn't race in it. Indeed we need this to push innovation and advancements to the sport.
But ultimately, for most people, racing isn't about the best technology, it's about level competition and pushing yourself and your equipment as hard as you can. This is why the most sucessful sailing classes are deccades old. Sure newer, high tech carbon hydrofoiling boats are out there, but people want to race, not buy expensive pieces of carbon.
If I had 10 people locally agreed to race the exact same board(something freerace ish) i'd buy one and we'd race. Hopefully more people join. That's how you start a One Design class and to be taken seriously by people like the olympic committee, that's what we need. All the Olympic sailing classes are one design. They're not letting in a box rule class.