It all comes down to the "simulation" discussion. Either it is one, and it works as you decide, with permanent damage, strategic play, etc. Or it's an arcade title where you hit each other until someone gets lucky and KO's the opponent. They opted for the latter, because it's better for the casual/"core" audience. It's nicer to play when you know you always have a chance to come back. Otherwise you'd see more people quit after one round, when they've endured too much leg damage, for instance, and know they'll be toyed with for 10 more minutes. Just like when you match up with a pro in a fighter and are down 0-2 and just quit as you don't have a shot at turning it around.
If you somehow thing these "quitters" are A-holes, you need to stop and thing what a "game" means for you, exactly. When you do hit that flash KO that creates an experience that you tie to the game.
When you have too much "depth" fewer people care to venture that deep. A better tutorial would be swell, but don't expect all the casuals to even do it. I don't have the numbers but many just skip the advanced tutorial, even great ones like in Injustice 2.
They can somehow split the game into arcade mode and sim mode. I'm sure it's possible. They'd divide the player base too but I'm sure there's enough people online. It'd cut down frustration levels for sure.
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