Why do people watch wrestling? It is totally fake with some of the stupidest things I have ever seen on it, but they create characters and conflict and that is what makes it fun to watch for most people. In the SC community I have to see that there is not a ton of overall conflict. There are a few "rivalries" and a few "controversial" players, but not a ton because we support one another and know that this is a hard game. That being said we all know that the top players are top for a reason and even if they go on a losing streak, they are still outstanding players.
Also, along with the human drama aspect, not a ton is on the line but some prize winnings and bragging rights. Yeah, sometimes there is more, but overall it is not like football or baseball where the person can sacrifice their own health for the well-being of the team. I know people can do it virtually in the game with risky plays and tactics, but it does not mean much except for in the game.
I am not saying this is a bad thing at all, but I am saying that these are all aspects that create the conflicts and story lines that drive us to television.
I agree with your article overall, but I am not totally against the idea of trying it out again. If it can be done well, then it may work. You never know for sure until you try I guess. =)