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You are mostly right, especially in mentioning battles between challengers as the local long lost tradition. The only difference is that currently Trials are supposed to be individual tests for each participant, not just a common qualification for larger challenge.

To create normal league there should be base for it. It's quite logical to have free entrance for region which acquianted with battle concept mostly by Battle Royal matches (which looks to be open for all as well), and even Island challenges are more like rituals and not regular battles for...

It's a joke only by fan standards. :p

This logic applies to regions where trainer battles are common thing. In Alola even Pokemon centers do not have appropriate fields as it seems.

It's fan's logic: "those who are not experienced in battles can not take part there". ;)

SM often follows common logic rather than fanbase expectations, so it is clear why you can be disappointed.

It would be funny if Team Skull will have some of your reasons while claiming that this league should not exist.

I can imagine that final four rounds will be references to Grand Trials. And every kahuna will announce its own rules for each stage.