Personally I think that sounds great in theory, and would be an absolute mess in reality. In a land you'd MAYBE be able to have 5-6 AA Pokémon spots for people to line up and catch. There are 800+ Pokémon, so you'd be representing a miniscule fraction of the franchise. Add in the fact that catching is only 1/2 the game, you'd be leaving out battling.
And that's not even considering the prospects of kids throwing the $60 interactive Pokeballs and breaking them instantly.
Yea, that does not sound anywhere as good as real life Mario Kart