Competing with BB doesn't have to mean competing with them on all fronts, and if I remember right the original line from when the game was first revealed was something similar to "Let's crush the hateful Blazblue" - something like that. Which if anything just makes them seem like they have a strong case of
Having
Anger
Towards
Everyone
Reaching
Success
But even I may be remembering the quote wrong, I do remember what you are referring to though.
Either they apparently don't have the confidence or funds to compete on an international level (Or console market level for that matter), or it's just simply not in their interest right now to tap into that potential audience.
This is the same company that, as far as I know, has yet to even release Melty Blood Current Code as a standalone title on PC - aside from packaging it with a Limited Edition Blu-Ray that was sold at Comiket. I'm not condoning piracy, but when you make decisions like that you aren't really giving people much of an alternative if they want to enjoy your product.
Like xlolxlolx said, it's been seven years since Act Cadenza hit arcades and they seem pretty content to just remain in their established market in Japan, which is the arcades. Melty Blood AA's console release was apparently a huge flop from what I heard (Then again, they made the "choice" to put it on Ps2 in the year 2009 so go figure?), so it's not that surprising that they're hesitant to do another console release - let alone take their product overseas.
That said it's really hard for me to believe that they were NEVER approached by someone who might have at the bare minimum suggested a localization for Melty Blood, I can't believe that it was never brought up at least once. Regardless, it's not in the cards apparently - at least in Melty Blood's case which had the advantage of already having a following due to the Type-Moon fan connection and 10 years of people having time to figure out the game existed.
That they'd risks to take a brand new IP to consoles, or beyond that matter, overseas (When they won't even take the risk with their "Breakout/Flagship" franchise) seems even less likely to me, but hey I've been wrong about these things before.