Honestly, that Evo continues to let Melee run their forever-taking format blows my mind. I thought all Smash was boring, but no, it's just Melee. I don't know anything about the series, but Sm4sh was decent enough filler while I was waiting for Tekken's top 8 last night. It certainly seems quicker than Melee, but is it still too long? I could believe that Evo doesn't want two Smash games as part of the official lineup. But then, I think that'd be true of any similar games. And I think Nintendo checking out after one Evo probably didn't help.
Maybe the sheer enormity of SFV is what made things difficult and things will more or less go back to normal next year...
Splitting off Smash should happen if the communities want to be split off. If it were forced on them... Man, factional conflict would erupt. Smash players would be demanding anime got spun off, SF would be telling Tekken to leave because 3D games are dead, Tekken would be accusing the American games of having bought their way in, Marvel's top players would have to be evacuated for their own safety. And at the height of the drama, Catherine players would storm the stage and force everyone to wear sheep costumes.