I don't buy the argument that the use of sport conditions has hurt the national tour. There are regions that still use carry-contest conditions and suffer for entries. Add in the regions that simply suffer for events, and you have a malaise affecting women's bowling in general.
Where the sport condition impacts entries, if at all, is the guest that might have bowled the national stop within a few hours of their home. They hear all the nightmare stories from local bowlers and the internet about sport conditions and decide that $350 for a few days is more than they want to chance. However, some of those same bowlers won't come out to compete in a regional (not using sport-compliant patterns) at roughly one half the cost, so the excuse that sport is a significant impact doesn't cut it in my eyes. If anything, carry-fest conditions might run off even more of the few-time entries.
My experience with the national events has been that many of the conditions do not play unbearably difficult, but they do require different adjustments than many of the women have ever had to make bowling on china. They also require a different thinking pattern on surface prep and drill patterns, but the same thing holds true in regional settings.
It is hard to say what could or could not occur with an SMO. Ultimately it might have a lot to do with how funds were to be apportioned between men, women and youth and whether each group had some semblance of autonomy is expenditures. Or you could see some funding also going to the PBA if the PBA made a request for funds.