It is included in effective grappling as well and is viewed separately from the other aspects regardless because it is heavily weighted. It isn't like the fight is scored with a checklist and if you win 3 of 5 or whatever you get the round. It is a matter of relevancy what happened for what amount of time to what degree and how are those things weighted within our criteria.
I don't know who is arguing that Condit won the fight because he didn't but that doesn't mean the judges got the scores right.
I realize it's not a checklist - it's very much widely arbitrary.
But again - if we are looking at just visible damage alone it's not scored in a "one-shot" deal at the end of the fight
(like the OP makes it sound). After round 1 - GSP wins in the damage department for the cut he opened near the end of the round. Same after round 2 as I don't recall GSP looking too bad. Lets say Condit wins round 3. If GSP looks no worse after the 4th round, and he opened another cut on Condit, then GSP should win round 4.
Again - I realize it's not a checklist, but thats how the judges should be approaching it.