1.) Its always been about hashing power. The alt-coin method of establishing your own blockchain was discarded from the outset, because the lead dev was worried he wouldn't get profitable fast enough.
Getting profitable fast enough is definitely not related to hashing power, there are more important reasons to do it on Bitcoin blockchain:
1. it needs to be on Bitcoin blockchain to make it possible to send bitcoins to exodus address
2. "simple send" can be done using a normal bitcoin client, this way you can make an illusion of working cryptocurrency (you can send coins!) spending only a couple of hours on making some basic script
2.) Bitcoin can be abused like any other resource
A robust cryptocurrency protocol is supposed to be resistant to all kinds of attacks.
As for other competitors, why should I bother? The information is out there and available, just look for it.
I'm well aware of competitors, in fact I am the lead developer of one of them. I just wanted to know which of them you had in mind. Invictus?