Yes, since the dawn of time. Always difficult to maintain motivation post draft as Eno said, especially if you're not hyper active and putting up very little points in the VHL. The idea for the E was to give those players a more enjoyable experience rather than being buried on a VHL depth chart (whilst also giving the VHL breathing room and letting the high end members reach their full potential). If that didn't work then that's a shame but just means that the reason for the falloff is less about in-sim production and more about 4-6 months being a long time to get any tangible benefit out of the league. In any case, the league ecosystem relies on some players stalling earlier, the model wouldn't work if every single draftee got to 1,000 TPE.
And whilst the reality of the E having more inactive players than the rest seems bad at face value, the whole point of it was to be the KHL-esque league where the less good players go to die (whilst still being a short stop in a successful career for those who go on further). We don't want those players in the VHLM and there are way too many of them for the VHL. So in my eyes the E is doing exactly what it was designed to do and those that don't think so either 1) didn't understand that was the intention or 2) believe in the sustainability of infinite VHL expansion so will never be convinced otherwise because it's the polar opposite of the view that the majority took and that's just life in a free speech society.