Christ, I hope not--the Aval Organization is hands down the dumbest thing to happen to the story of this franchise, and that is a truly monumental achievement given the contenders. I'm sure we're stuck with Groh and Azwel for at least some future games, but I certainly could do without any more story being connected to that tedious, cornball, lame nonsense. That reaction aside, I think you're correct that the time skip need not occur--17 years is a long time to work with to defer the question of deciding if and to what extent to replicate the SCV narrative and roster. I think they will be happy to put that question on the backburner for 2-3 games after this one. I've actually always thought a game set earlier in the backstory would be nice too, but given being asynchronous with the main timeline iwas a big part of what contributed to SCV's woes, I doubt they are likely to experiment with that again any time soon.This gives a lot more room for the aval organisation to be fleshed out.
Personally, I think if they were smart, they would pause the atory progression for a game and add little to no additional plot and just make the game a nuts and bolts fighter. 50-60 characters from across franchise, 20-30 stages (half legacy), numerous ranked and player match modes (including team battle and tag battle variants), a definitive creation editor that is virtually comprehensive of all assets from previous games, numerous guests, a fully fleshed out training mode, plus an in-depth tutorial mode with Edge Master and Olcadan (similar to SCIII's but deeper), the full franchise soundtrack selection, and robust online and matchmaking features and options (plus richer creation content and experience sharing). But only stripped down single-player experiences like arcade, survival and maybe a tactical mode similar to Chronicles of the Sword but with less plot cruft, with plenty of variation of stage and character effects and win conditions, like Tower of Lost Souls and Libra, without the poorly implemented pseudo-RPG filler. Buuut, it will never happen.