Tournament C would soon spring up, featuring A's ruleset and B's prize pool, establishment means little, take for example that after a medical Intellectual Property patent expires you see on and off brands of the same exact medicine sitting side by side in a pharmacy store, the on brands certainly had the dominating market when it just had expired, yet as soon as it did there were people right there who kickstarted the competitor. A good ruleset is a desirable, so is a better prize pool, but a tournament with both would be without compare, and at that point tournament B could be far worse off than tournament A when facing competitor C. As well for the sake of argument I could just assume a variety of other opportunity costs tacked on to tournament B, such as the extra gas spent getting there as opposed to tournament A.
The problem you propose with social ousting would merely be replaced with 'official' or 'standardized' ousting, there is little to no difference other than one has a label which can now be rallied behind by their supporters, though comparatively insignificant because you can just label the freely chosen ruleset 'official by social norm'. I certainly believe that Mario Bros. stage can be competitive, I <3 it, look at the responses, that one guy gave up and turned good natured, the other guy was mostly 'no this is not competitive', then he turned 'Hneh I guess but the other borderline ones are better and it's still stupid', the other guy raised a valid point by saying 'hey, look, Smash competitive play should not be so overwhelmingly about stage manipulation'. Overall it just looks like 'hey I like it but no thanks becuz lol idk' (Edit: Now that I read more of this I may need to take that back, such hostility!). If we were to propose that an 'official' ruleset were to 'enforce' this, then eh, I can see there being a big backlash, a negative thing for the community indeed.
Really, I'm no expert on sociology (the science of human action that I neglect the most maybe), but it seems like there would be little difference between our models, now that I think about it, than what just a couple of people say is official, and a bunch of people saying what is recommended because of the big tourneys. The 'official' scenario would flub harder than the 'free market' (I just realized I should put this in quotations too
) scenario because labeling and discrimination would be supported by a band of merry men who call themselves official, which would actually likely happen in my 'free market' scenario too, I mean, we're not holding people at gunpoint like a
real government
.
I guess that just turns it into a world of ideals, and I'm much more inclined to strive for a place free of the inevitable.