SSB3DS had a chance to really be a big part of the competitive scene by having 3DS events that ran alongside ("side events") the main events. The draw to these events would be having enough setups to play on since everyone has their own personal console, game, and monitor; as well as the draw of utilizing Customization since everyone has their customs unlocked on the 3DS. "For Fun" events could include a Smash Run competition.
This was going to be the perfect way to both introduce Custom Moves into the competitive scene for testing as well as a way to ensure a healthy scene for the handheld version all while minimizing interference with the console events (since they use two separate systems) and keeping attendees entertained between matches/events.
The problem was that the zealous and impulsive members of the custom movement decided they didn't want to wait a year introducing a new mode of play, they wanted to shove customs onto the console version's competitive scene and pushed it into EVO thus having a lose-lose situation: If Customs failed then we lose the chance of introducing something "new" or "novel" to the scene when the standard competitive 1v1 no-items/conserative-stages settings may become "stale"; however, if it were to succeed and becomes a primary way to play then the standard competitive 1v1 rules has NO FUTURE and possible metagame analysis and understanding is lost - and there's no introducing something "new" to the metagame.
Rest in peace, 3DS, you had a chance at tournaments with customs, but now we'll just have to ride it out and hope customs do not ruin the game or does not fail so much it tarnishes the game and paves the way for a Melee-only Smash future (as it would become the only "competitive" game of the series that has a scene).