I dont see any problem with any of this?
The COMPETITIVE community is soft banning the fan service to highlight the gameplay more and I dont see anything wrong with that. It won't affect the casual market of the game since most of that fan service outfits are mostly DLC and the casual market rarely does the tournament or bother to watch them. If you want to play DOA for the fanservice you can play it at your house, friends house, Online and pretty much anywhere and those outfits won't change the core mechanics of the gameplay. It's not really a solution but it has been suggested before that DOA could get outfit filters or let people filter what they want to see or not since not everyone is into the fan service but they really like the gameplay. Also another hypocritical to call DOA the only titty fighter when games like Soul Calibur have gone into doing outfits as fan servicey as DOA yet because the game started as a "serious" series people brush off those outfits or characters despite getting breast augmentation and clantlier outfits.
Look at this gem or
this other one.
Team Ninja can continue to make the fan service outfits but it would be nice if they actually bothered to even things out with casual outfits/regular wearable outfits perhaps people wouldn't be complaining as much. The first trailers for Dead or Alive 5 were less sexualized than the later trailers and that changed after the casual community started complaining about it which I still remember clearly. Team Ninja could try catering in a way to both audiences with the DLC and still keep things properly and divide the promo between gameplay focused and fans service promotion.
I do not see anything wrong with trying to make the game focus more on the competitive side at a competitive tournament when it doesn't affect the people who wants to play the game for fanservice which if they only want that they can google the outfits or watch the thousands of videos showing off the outfits. The game tournament is not a show off the clothes but the gameplay and if they feel that trying to highlight the gameplay over the fanservice is what they want they are more than welcome to put on their rules. I do agree some of the decisions are odd with the selection but I dont get what is wrong with trying to highglight the gameplay of a well polished fighter that happens to also has fan service.