I've always hated this argument for two reasons.
1) Money is fungible. The game's success in the arcade has near-zero bearing on if making a home version would be a wise investment for Namco. There's nothing that says that the revenue from the arcade version must be invested into the home port -- if they think they would make more money from making another Idolmaster mobile game, then guess what? You're getting more idols.
The one thing that does matter about positive arcade performance is that it means that the game is good enough that people are willing to pay for the privilege to play the game -- and that's important! Arcades (especially today) are a very harsh environment and a game doing well there almost always means you've past a rather high quality standard. So there's little concern now that Tekken 7 will tank because the core game experience stinks.
2) The way revenue from arcade games work now is very different than how it was in the past. In the past, arcade developers would sell their kits and that was the end of it. They held off on console ports mainly to avoid pissing off arcade operators and to give them the time to get a return on their investment as the game ran its course in game centers. Nowadays Namco makes revenue on every coin drop -- so even years after the fact, a home release is going to have a negative impact on the revenue gained from the arcade version. So the home version needs to surpass it's development budget and the lost revenue from the arcade version. (And given how hardcore the player base tends to be, doing things like regional or off-region platform releases doesn't help.)
Tacking back to SF, Capcom willingly gave up that revenue source for whatever reason. Although I don't know how much uptake there would have been of dedicated kits for the game given its simultaneous launch and Nesica 2 is launching about a year too late for it (as the original Nesica/Aime cabinets are way too underpowered to run SF5). I could see it being problematic with their more international focus, but their approach has been awful all the way around anyway. It probably is the right long-term move to de-emphasise arcade revenue (as that sector has been in decline for the last decade) but I suspect that this wasn't the right time to cut it completely off.
Yep exactly. I agree with what you're saying here. I wasn't arguing that it's a better option. I'm saying that if you fulfill the qualifications for that option then it's potentially smart but not everybody can qualifies and not everybody will benefit from it. Tekken can qualify for that option though, many other fighters can't. It varies.