The issue that comes up for Team Battles is valid, but I'm sure there's a way t' fix that.
Bein' able to switch without actually performin' a move would be a good idea, but I ain't sure it's enough. Even if you switch the moment the CPU is taken aside for a combo, and you DI properly, they can just turn around after knockin' you off the stage and go for the other, essentially goin' back and forth to rack up damage. There's always the chance they'l try t' edgeguard as well. Maybe if the non-cancelled character switch (a raw taunt on the ground or in the air) was literally instantaneously and you could act immediately outta it, that'd work.