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I don't think the point was really to create "competition" amoungst the shows...they don't air against each other, and they're owned by the same company, and thus, don't compete for talent. I don't even know if the point was really to create distinct idenities for each show. The purpose of the roster split is really just to make room for more stars to develop, which hopefully leads to increased viewership, merchindise sales, ect. The other purpose I'm pretty sure was to be able to increase live event profit by doing multiple tours at once. I don't really see how trading wrestlers from brand to brand goes against that.
As for wrestlers appearing on shows other than their own, that's something that has always happened before big PPVs, Wrestlermania especially. They need to build up the matches as much as possible, and having wrestlers cross over does just that.
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