It was never about the damage, but as easy entry for people that already were doing "normal" RC stuff.
Whatever you build, it is not inspiring to test a new robot, with all its possible faults, in a full on match against a proven, veteran bully robot. It's better to have the opportunity to do some test matches first. Also, competences, commitments and budgets are different for all roboteers. It is really the same difference between professional football teams and our local amateur, under 16 years old, teams.
I know several people that would like to have a choice between 3rd division, 2nd division or Battlebots level, including myself (20+ years veteran now).
Maybe beetleweight is the new raptorweight? It just looks too small in even the DRG arena.