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So people always try to say Psychic covers cosmic stuff already and that is 100% true, but also irrelevant. That's like saying if Ice Type didn't exist back in Gen I that it couldn't exist because "Water covers it already". It just doesn't matter, there is no reason they can't divorce Psychic from it's cosmic themes if the creators feel like it, especially because it would be great for marketing and it is fucking absurd how thematically broad Psychic is. There's plenty of room to do split them, Psychic's pre-existing cosmic schtick really doesn't prevent anything at all.
The other thing people often say is "Cosmic doesn't make sense as a Type, cosmic is just a location", but these folk misunderstand the idea behind Cosmic. Just compare it to Water Type. "In the water" is also just a location but that's not really what Water Type is or what Cosmic is. The main thing that DEFINES Water Type is they have an affinity for water and ability to use Water Type moves. Some aquatic-dwelling mons are not Water Type, some mons are Water Type but not aquatic.
So what Cosmic REALLY would be is an affinity for the cosmos and the ability to in some way manipulate spatial forces, or to draw power from the stars, or manipulate space-time etc. Cosmic is "star power abilities" or cosmic affinity, basically. In this way, it's perfectly fine that none of the Ultra Beasts would be Cosmic Type because none of them actually have cosmic-based elemental affinity. And yeah I get it, I KNOW that "elemental power of the cosmos" is super goddamn vague, but that is the point, no? They have mysterious enigmatic cosmic powers beyond our reconditioning. Cosmic Type can easily work in the games, it being a little bit "out there" certainly doesn't hurt the idea.