I think Monaco holds something special. Not sure what. Yes, it is the playboy captal for the rich, and participation in F1 is only for the rich.
Maybe its because its one of the only remaining original circuits. Maybe its because its one of the few places where the spectators can be near enough to the action not to need binoculars.
tradition...? Yes that seems to be more important than driver/crowd safety, run off areas etc ...the cars have evolved but the circuit hasn't, can't.
OK, simple solution is you want massive run off areas, hold it in a field in the middle of nowhere, and not allow spectators.
Like most sports, spectators want to be nearer to the action. Smell the engines, the tyres, get the atmosphere. Else may as well watch it on the telly. Or, more interestingly, watch the Dulux go off...
You are always the first to bang on about needing to see the sensation of speed. Yet want nothing near the track to give that sensation...