Like it or hate it, Yokai chads won /vp/.
There has never and never will be a bigger stain on the franchise than the absolute scramble TPCI was in than when they felt Yokai Watch was going to get a decent hold on the genre. Even if Yokai were nothing more than a fad, the effect it had on Pokemon's development cycle after Iwata's death is undeniable.
They were intent on continuing with the Kalos plotline and actually having things come together, but with the opposing franchise's quick surge in popularity they took the different approach to make sure they could compete with the same audience by simplifying the game with the Rotom Dex and one-time gimmicks like Z-Moves.
Had this not been the case, Go functionality would have been a release feature with Sun and Moon through Bank. The games would have looked and had more exploration elements like X and Y, and megas would have been reworked with the addition of more mega stones.
That's in the past though, we'll never get to that timeline. Yokai Watch stained the franchise by helping them realize they could be complacent in releasing sub-par games. Yokai Watch made them realize their target audience isn't children anymore, and that most of their income comes from misplaced nostalgia and influencers that consume regardless of quality. Yokai Watch directly pushed Pokemon towards the partnership with Tencent and the creation of Pokemon Home.
Keep holding out hope things will get better, but it won't /vp/. This is the future that has been chosen for you.