It feels like ErthTK becomes a topic of competitive discussion every year around the time WC or CL takes place. It makes sense, it's a mod that has really always been in the rotation and nobody since came up with a better alternative to competitive TK.
Usually the mod doesn't get much attention, but when it's time for major comp events people are suddenly excited to see how the players match up in TK. As an example, the last match of WC, in the finals, was just a masterclass on how TK is supposed to be played and I really think you should watch it!
click here. I feel you, there is a level to this mode that most casual players never really pick up on. It's the minute details of hold/relax to avoid dms, or even getting the right angle on the grab that ensures a better potential for dms. While it seems lucky at most times, I can assure you there is a a reason for every dm, and those that really took the deep dive to understand the mod came out as better players in general.
As for spectating out mods, that can be the case for any mod. There are a few competitive players that love TK, and consider it a good mod, while others are hating on lenshu saying that rk would be a better choice for ranked/whatever. All preference after all, you don't want a mod you're bad in to be in the ranked rotation or CL/WC mod list. As for removing the mod entirely, there really isn't any alternative that would make sense. Replacing it with JudoFrac is like going from jousting, as you compared, to an actual coin toss. While not as often, I do hear good things about ErthTK, but the only thing I hear constantly about JudoFrac is that it's simply an upper edge for players to luck out on the better ones. I guess it could get added at some point to the rotation, but I'd just wait for yet another suggestion, from a different player, to remove this luck-based mod out of any rotation.