Yugo hasn't backfired for EN at all, though. The first two post-debut streams were delayed by like 20 minutes but the streams themselves were very smooth.
Most, if not all, of the original Nijisanji members had basically no streaming experience either. They aren't going to look at Yugo take a week off and suddenly think they need to change course in VTA.
This much was always obvious. You can't compete with NijiEN with non-fujo Brotubers. There just isn't a big enough market for that.
The funny thing is that Cover is inviting another unhinged chink fanbase to them for the sake of competing. Western fujos are broke as fuck. Keeping the genders separate may be best for maintaining unicorns, but it also reinforces the idol culture stereotype rather than smashes it, and the people in the middle who don't care are not going to get their Male/Female dynamics.
I would be hugely impressed by the balls of Cover to shitcan the segregation for EN and risk irreparably altering the culture of the branch.
