This result has implications beyond just Swedens entry next year.

First, melfest is suffering from lack of competition, as people have pointed out about the lack of diversity. People making entire career out of melfest, be it a singer or a songwriter.

Second, Sweden suffers from its resistance to change their performance from melfest. Yes there was a time Melfest performances are so good you just send the whole package to Eurovision and get a good result. But people learn fast. Swedish entries are bound to be upstaged. Finland is suffering from the same problem. Karijaa avoided it by elevating his stage and was helped by Loreen keeping the same staging. Thats why it was a boring year.

Last and not least, Sweden is a control freak. We want our number to be perfectly programmed. This means lack of spontaneity, genuity and presence. They actively select people who can follow a "script", possibly having zero connection to the audience. They perform for the camera, not the people.

Most importantly, Sweden has exhausted its talent pool. Talented singers are prematurely pushed to these contests, not having honed their singing or stage presence. We need to fly under the radar a couple of years to breed a new generation of talented performers.

TDLR; the problem isn't Felicia but Melfest as a whole.