"Insisting that EVO:RAIL meant the acquisition of new vSphere licences therefore made no sense."
It made sense to VMWare, trying to sell more vSphere licenses. It also made sense to VMWare customers who realised that their supplier was using the age old selling playbook where-in it is written that it is easier to find ways to get more money out of an existing customer than it is to find entirely new customers.
Making sense wasn't the problem.
Not liking it was the problem. :)