I wonder how other forms of performing arts structure the evaluation system in competitions.
For skating as a performing arts competition, greater emphasis on the areas covered by the performance/execution, choreography, and interpretation components and less emphasis on difficulty would be appropriate.
Skating competitions governed by the ISU and those leading up to them and using similar formats, however, are NOT performing arts competitions. They're athletic competitions that happen to reward some qualities defined as "artistry" because those qualities demonstrate superior mastery of the athletic techniques.
There have been and are artistic skating competitions that take place outside of the ISU structure. Pro competitions. Local, national, and occasionally international competitions sponsored by some ISU member federations (France, Canada, and the US come to mind) and by ISI. The ISU did try its hand in the late 1990s at sponsoring a few interpretive events for a few current and past star athletes.
But there hasn't really ever been a coherent structure for organizing these kinds of events on an international scale the same way that there is for skating as a sport.
And of course there have been all sorts of noncompetitive ice shows that have emphasized artistic merit, in addition to those that aim more at casual entertainment showcasing well-known names from the sport of skating -- with some overlap.
I would love it if there were such a structure for developing and presenting skating performances in which art was the main concern and skating technique was harnessed to serve the artistic purposes. Figure skating as performing art rather than as sport. A different purpose for the medium of movement on blades.
As with music, dance, theatre, visual arts, and so forth, the highest achievements of skating as art would probably not exist in a competitive format at all, although there might be competitions along the way to develop and identify the potential professionals in this field. And of course auditions are a form of competition.