Honestly this isn't a big as of a deal as your all making it out to be. Usually I'm against this type of stuff, but clearly this play style was ment for competitive play as stated by the producer himself.
Couple of points
If it was suppose to be a play style why not just make a new character?
The competitivecommunity crapped on the added characters every single game, but the have been a major success casually they could effectively kill two birds with one stone. Instead of adding a new "King of Iron Fist character" which would anger the Soul calibur fans, they added the style.
It'll take to much time to setup
Not true at all, for the most part it would be a one time deal, usually those that support there scene with systems for tournaments are the ones that ALWAYS bring there system for tournaments. So at max you have might have to create it 3-4 times max at tournament. Once the default male is chosen with the default outfit your good to go on that system for all tournaments to come
If you think your going to having people tweaking characters in order to win matches the you have a much bigger problem within your community than wanting to Ban this CAS. Not only that I would be pretty obvious if some person ALWAYS wanted to play on a particular system no matter what.
It's more trouble than its worth
This is what makes me the most upset, this is a huge potential series bridge, sure it was possible in two, for PS2 users. But this is a "new age of heroes" (where my marvel heads at) There are more people playing fighters than ever now, and what you do will set the standard for the future of this game.
If I allow one I have to allow all
No you don't as tournament organizers the standard rules are LAW just because one CAS is allowed doesn't mean they all have to be. Its just as simple as the pre-created default male DJ CAS is the only one allowed.