regarding the title of your thread:

I strongly disagree that everyone hates karaoke. Many MUSICIANS aren't crazy about it, but the population in general seems to love the fact that it gives ordinary people a moment in the spotlight.

This desire is so prominent in human nature that I believe a person could make a good living with a travelling karaoke show, charging people a few bucks to perform, and awarding a prize to the winner at the and of the evening. People would stay to see who won, the club owner would appreciate the business, and the award would serve as positive reinforcement... so people will keep coming back ("behavior that is rewarded tends to be repeated")

It should be easy to arrange venues for this because all businesses are constantly looking for new ways to draw customers. They don't have to do anything or pay anything. All you have to do is provide the PA, a player and maybe some spotlights. The contestants would be responsible for providing their own backing tracks... or you could maintain a library of favorites.

It's foolish to dismiss a good idea simply because 100% of other people don't agree that it's a good idea. McDonald's is one of the most successful franchises in recent history, yet lots of people hate it. Nevertheless, they continue raking in the bucks.