Yes, and, in theory, it is a waste of readers' time.I don't think that anyone had an issue with Hyperion as an Avenger; for example. creating a DC analogue to mock DC is a waste of resources.
But, consider how most Squadron appearances play out. The first intelligent handling of the characters was the 1985 series. Before that, the characters were depicted as imbeciles. Even correcting for the generally lower standards of Silver Age comics, pre-85 Squadron appearances can be summed up as "lolololol, the DC guys am teh stupit". Post-85, it was not much better. The Squadron were written as clowns during Gruenwald's run on "Quasar". (This may have been more a result of Gruenwald wanting to use characters that he had no real reason to use more than corporate sniping. But, Squadron were jokes.)
The Ultimate iteration of the Squadron (JMS et al) was a noble attempt. But, even that was hindered by trying too hard to be current and mature.I don't think that anyone had an issue with Hyperion as an Avenger; for example. creating a DC analogue to mock DC is a waste of resources. I can think of better ways to use Gary Frank, at least. having recently read jurgens and JMS' take on the team, I'd say that the JMS version had more storytelling potential. but I'm ok with him going out on a cliffhanger. i'll ignore the non-MAX stuff.
It fell back on trying to be "ripped from the headlines" or just relying on basic shock-value. Those were common problems for comics at the time. And, in the case of the Squadron, it was s step up by virtue of not simply using the characters as idiotic proxies for the competition's characters.
But, you have to recognize that it is the anomaly, in both tone and quality. There is also the problem that Gruenwald's writing was, at best, a product of the time (the Bronze Age), if not more dated.Gruenwalds Squadron was great. Honestly I still put that up there with Watchmen and Kingdom Come.
And, Marvel (along with DC) is now willing to publish comics with the characters failing at the conceptual level. (The current run of "the Punisher" is based on that.) There is less need to use proxy characters when mainline characters are available.But in the MU, there's only so far you can go.
That is unlikely with the Sentry getting a push.Time will tell. Maybe Hyperion will get another shot at being an Avenger. It was something he said he was proud of.
The other problem is that Hyperion was in 2 failed series. The solo series was good. But, there was no support. And, the Squadron series failed despite a significant push from Marvel. Honestly, I am surprised that Hyperion survived "Secret Empire".
I half expected Blurr to show up in that Robinson SHIELD series. But, as far as I know, he has not. Robinson back-wrote a convoluted origin for Spectrum that tied her in with the Inhumans. But, Marvel getting the X-license back means that the Inhumans are likely going to be forgotten. There are currently 3 Zarda variants floating around (Gruenwald, the Squadron Sinister variant, and the one from Ewing's "Defenders" series). Nobody cares. Nighthawk is dead, and was replaced with another d-list character in a cancelled Avengers series.