well, first off, the sales haven't been that great. Secondly, between the gems, quick combos, and three-hit combo that does a tag out, the game isn't tournament friendly. The gems can fortunately be removed from play, but the process to do it at home is excruciating. I've honestly given up attempting to. Quick combos in that game is almost the equivalent of Easy option back when Capcom ported fighters to the GBA and gamecube (on gba the big offender was SFA3, on Gamecube it was CvSNK 2(?)}. Quick combos cannot be disabled in the game. It is considered cheap to use in tournaments because it requires no skill and usually upsets the tournament players when it happens to them accidentally. The three hit combos have the same issue as well as the quick combos, but this is in even less control of the player. Similar reasoning is why the Blazblu push never happened when the last version of that game came out.
Also sales. I say this knowing that I don't have full stats for the game. I can tell from two sources that it is shit. Vgchartz says that it sold .61 million units worldwide on all platforms. Amazon ranks the ps3 version at #952 and the 360 version at #1152~. As a comparison for amazon (their algorithim is wierd. deals with number of units recently sold and other stuff), Street fighter IV ps3 vanilla is ranked around 800 and Halo 3 is currently 192. While not a definitive answer, I'm sure people can find more circumstantial evidence with other retailers (like the current price it is selling for).
Regardless, the number of sales for a game typically gives an idea just how much participation will be in a particular tournament. The obscene turnout was for SFIV AE and UMVC3 (ok, mainly UMVC3). MK9 and KoF13 had decent turnout. VF5FS was mainly foriegn (since the game just landed on US consoles) and SFxT was barely existent for other reasons.
Non-factors:
DLC characters
The typical evo judgement call is to make sure there is enough time of the game being out to determine if characters are broken or not for tournament play. E.G. Mortal Kombat 9 had Evo participation, but most of the DLC characters came out in short notice of the tournament. Those characters weren't permitted for use that year. Those characters had enough exposure by this year to permit them for play. It also doesn't really matter if they are DLC or not. For the KoF XIII tournament, all characters including DLC were allowed. When SSFIITHDR had a tournament at Evo, Akuma was banned outright.
Pandora Mode
As I'm sure some has eluded to in previous comments, the matches often lead to timeouts. One would think that Pandora mode would help counter timeouts, but this isn't MvC3. Characters don't move that fast and it isn't easy to chase down an opponent.
That is about all I can input without being redundant or being super longer. I'll end this with a slightly different question: why was this game even at Evo? I've seen the fgc go on full assault after the easy option riddled Blazblue update. To even get SFxT running suitably for tournaments despite the tournament mode update takes a lot of prepwork before and it is expected that players will manually disregard another featureset of the game. It isn't even just that, this game is panned by not only tournament players, but casual players as well. It is just all around bad news. I kinda laughed with Seth Killian talked at Evo about being happy that the tournament hasn't sold out, but by including SFxT it did sell out IMO. It compromised the FGCs preferences just to get a low selling game to stream two matches on finals day.
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