This is literally the worst design choice I have ever heard of...what in the actual fuck?
I think you can still do character select in lobbies (I wouldn't know, I haven't gotten in any yet, lol), but those don't earn you Fight Money.
That's rational. Assuming you're someone who sticks with a main character, it should indeed curtail the wait times.It's a good feature. It reduces load screens so you get to matches quicker. They should streamline how you set it though.