Honestly all they had to do was institute an NXT off-shoot and call it FCW since they still own the trademark for it.
Put on FCW instead of 205 Live, collapse that division into NXT by having a match of that 'style' on every show guaranteed, and then you can do the 2.0 idea in parallel to NXT - which had legs in, if nothing else, helping to teach their developmental-made wrestlers how to have the prestige wrestling matches you'll expect from them if they ever hold a title on a wrestlemania. It's the very thing the people from the FCW days pre-Black&Gold had a hard time with. It's partially what sank Roman, and what they failed to even address with E for a long time.
Basically, treat NXT like the IC/US title, if RAW/Smackdown are the top title tier of your company. That's the intermediary step where you put people to either finish their training and get them prepped for TV, or where you send people down to fine-tune new gimmicks or work on a singlular weak point (Finn and his Prince gimmick, in both regards)
But... that ain't what they did, because they cutting every possible corner and dollar to make it appear a certain way so they get the biggest sale price.
So... in a way, they end up bailing out and letting their only possible competition become the only game in town for something that they were at least competitive in. It isn't that Vince don't see AEW as competition - it's that Vince doesn't care about wrestling and never has. He all set to cash out, and he doing it the same way he first cashed in - by not giving a fukk about the wrestling landscape in his wake. Not when he torpedoed the territories, and damn sure not now that the options are walk away with a bag or actually have to be competitive in a landscape he now is even further out of touch from after running unopposed for so long.
He's just like the old politicians who are retiring now instead of bothering to run a re-election campaign where they might have even a mid-tier primary challenger. And the immolation of Hunter and Shawn's project puro E-Fed is just one more thing to be sacrificed. It's just, unfortunately, the first of the very few things the company does well to get done greasy.
Won't be the last, either
CFO$ got bushed, Top-quality talent got tossed like unwanted garbage - many without even being given a chance, The House that Hunter Built got set on fire like it was the Firefly Funhouse... the
MINUTE the video package team starts getting hit with 'budgetary constraints', it's a fukking wrap