That’s not what happened. CCP had been working on WoD for a few years now and had pretty much stopped investing time, money and DEV effort in to EVE. They had been using all of EVE’s revenue and DEV time to work on WoD. An unhealthy move unless they considered EVE to be a dead end (which is kinda was with legacy spaghetti code and them lacking any actual devs with actual experience).
What you know as WiS (previously called Ambulation, back when they still had a dream of making it an EVE expansion) was nothing more than an alpha for WoD’s character stuff, it wasn’t intended to add any actual gameplay to EVE itself.
THAT is why it only had one room with zero actual useful gameplay content and that is why they let it rot and killed it off. They never had the intention of making it for EVE in the first place.
Incarnage wasn’t an outrage over the introduction of WiS. It was about the years long neglect in terms of EVE development (spent on WoD), CCP Zinfandel’s $1000 jeans, Hilmar’s Fearless memo AND WiS because it was terrible.
Had WiS actually been good and added gameplay, ie was meant for EVE, then we’d have loved it. Had WoD succeeded CCP would have ran EVE out with a skeleton crew, the failure of WoD forced them to refocus on EVE which lead to the Seagul era.