Me and a member of my clan, The Beetle Breeder Club, surmised that the reason most people don't bother with the Battle Beetle system is that there are not a lot of things to do with them.

1. The Exp. they get for winning isn't much no matter how many times they've been battling
2. The amount of SB you win also never changes
3. other than to just continue to feed your beetles there's not a lot of use for the shaman herbs.

We thought that perhaps more things could be added to make people more interested in using the Battle Beetle system.
Such as beetle crafted applicators or special decor that you can only get through battling.?
Maybe rarer beetles can win you more extreme prizes?
Having more rewards for taking the time to raise and keep going with the beetles might make more people want to use them.

We in the club love our beetles! We just think that they're underappreciated because they don't do too much in the long run.