While I realize the rules have been the same for 15 years, that doesn't mean new rules shouldn't be considered. Rules like "no re-picks" are designed to prevent problems from occurring in the first place. Rules to prevent counterpicking never really were implemented before because it was never a problem. However, now it is a problem, and you can't just ignore it.
I know you guys have the firm belief that UMK3 or MK2 should have no rules, that you should play the game "as is". I agree, the gameplay itself should be played as is. But we're not talking about the gameplay necessarily, with the exception of the R.Smoke/H.Smoke problem. It doesn't matter how frequently a counterpicking problem occurs, it only needs to be a problem for one tournament. After that, changes need to be made in order to prevent it in the future. Of course not drastic changes, but changes non the less. You can ease into it as subtly as you like, but you cannot simply ignore it.
Something like a prevention of counterpicking is enforceable, discrete, and warranted. We don't have to adopt the same exact no re-pick rules as SSF4, we can do what Dreamcatcher mentioned, and go with winner can re-pick but has to pick first. This however, would need an extra rule added to it. Such as how long the winner can take to choose his character, since there is a time limit at the select screen.
Keep in mind, I am speaking from a non-bias view point. I use Human Smoke, a character that really has no solid counter. I use him and don't switch. So this rule wouldn't effect me hardly at all. Just wanted to point that out in case someone thought I am campaigning this because of someone counterpicking me. I don't even mind counterpicking at all, I even encourage it. I love beating a character I have disadvantages to.
Tim mentioned he likes to use certain characters against certain characters. Many people like to do this. So what happens when both people want to use a certain character depending on who the opponent chooses? You will see two players just waiting for the other to pick at the select screen. The rules we're trying to implement would allow both players a chance to do this, at least if they lose. If you win, you shouldn't mind the opponent getting a slight advantage by being able to counter your character. Tim also mentioned you couldn't regulate this, when in fact it would be fairly easy to. First match, both players tells one person who they're picking. This will prevent first match counterpicking. Then whoever loses, gets to pick second next match. Either by having winner no-repicks, or winner has to pick first. They have counterpicking rules in every other fighting game tournament, it's time for MK to follow suit!