The first event you describe is what used to be known as a road rally - not so common these days unfortunately. They usually (but not always) take place at night on open public roads. The objective is to get from A to B via various time and passage controls in a set time window, and within the speed limit. It is as much a test of navigation as driving, as the driver's navigator is only given the route about an hour before the start, and then he or she has to plot it on maps and then tell the driver where they're supposed to go.
The second one is a stage rally, which does take place on closed roads, private land, forestry tracks etc. Here, the objective is to complete the stages in the fastest possible time, and without incurring delays on any of the road (non-competitive) sections. Some smaller rallies, the competitors are issued with road books that have the stages detailed in them. On bigger rallies, you will have the recce, so that the co-driver can work out his or her pace notes. When you watch in car footage, this is what you hear being read to the driver.
Generally, the success (or not) of a rally depends on the organizing club. The same is true of cat shows - pompous jobsworths can be found in all walks of life, not just in motor racing.
If there is a problem, complain directly to the RACMSA - the body which licenses motorsport events in the UK. Pissing off the locals is one of the worst things a club can do.