The basis of a fighting game is competition. Competitively focused generally just means the gameplay is better.
No, not really. There is a difference between designing a game with competition and a competitively focused game. Of course all competitively focused game are competitive games, but not all competitive games are designed to attract a audience, who is into competitive focus games. The difference is mostly in complexity, options and variables.
Simple example:
Stone, Paper, Scissors is a competitive game. Two player try to beat each other with choosing one of three option, which beats the option of the other player. If is a game about reading your opponent, tricking him and some luck. The game isn't much of competitively focused game, since there isn't much deep to it. The options are very simple, the mathematics behind the outcomes are basic and the skill-ceiling is really low.
If we want to make Stone, Paper, Scissors more competitively focused, we have to make changes. "Stone, Paper, Scissors, Spock, Lizard" is actually a more competitive change of the original rule set. Now we have a lot more options. Actually remembering the rules of the games becomes a skill, which can change the flow of the game and how you read your opponent.
But which of those two games is actually the more popular and casual one? Of course it is "Stone, Paper, Scissors". The question in the end is, which of the audiences do you want to reach. A casual player could still play "Stone, Paper, Scissors, Spock, Lizard" by simple randomly choose his option, but the lack of will of understanding the game, will discouraging him playing the game even more. So if you want to attract this audience, you either have to make your game simpler or change the other parts of it to help the player understand the game. BUT you have to change something, which is an important factor. There still will be ceiling, those types of players will never bother to chase.
The other way around a to basic game, will not attract the hardcore gamers. Mostly those people, who help keeping your competitive game alive in the long run.
So if your a company and want to appeal to a big audience, you would try to get the middle ground. Which i believe Sakurai tried to achieve with SSB4 and the developers of PM do not.
It really, really doesn't
Where is your prove of this matter? For Glory is designed for a competitive crowd. Just not the western competitive community. The Japanese community actually prefer the Final Destination form. The true answer (and problem for many) is, that the developers didn't took the western community in account.