This OP seems very biased to me. It was stated at the first page but I'm going to go a bit further.
What gap exactly? There's absolutely no gap that exists between simulator and Wifi players, because the people who are dedicated enough to play on Wifi instead of simulators will use a simulator maybe once and then never touch it again. The only thing this could possibly affect that's actually relevant are VGC players, and we make separate tiers just for the event. You also didn't have to rely on action replays, you could just run through the elite four enough times.
Alright. That's great and all, but in Heart Gold / Soul silver people never legitimately leveled their pokemon to level 100 either because it auto leveled so they didn't even need to cheat to do that. Which makes your argument worthless. You also can't say that both players won't just level up to level 100 either.
Honestly this is your only real point not seemingly touched by bias, really. Though, I haven't met anyone who actually levels their pokemon past either 50 or when they evolve, simply because VGC is the only major reason to even use the games to play competitively.
Again, you really can't assume that people won't just raise their pokemon to level 100 on the cartridges, although that point is moot since there's no reason to with simulators around. I really think you overestimate how many people seriously play on the actual consoles competitively when it's so much easier to just download a simulator and instantly have everything at your fingertips. Everyone I've ever met has dropped the idea of raising pokemon and battling seriously when I've shown them Pokemon Online and Pokemon Showdown.
Laziness on cartridge/console player's parts is not a solid reason at all to change something like this. We create separate tiers for both GBU and all of the VGC players who want to practice.
Even the majority of VGC players who know about simulators don't level up and breed their pokemon without testing on simulators first. That should speak volumes on how flawed your logic in this opening is.
We emulate what we can do on the cartridge, not the metagame that exists in wifi play on the consoles. At least, I thought that's what Smogon's policy was in a nutshell.