The two, while similar on the surface, are DRASTICALLY different when examined in full.
The VFW/AL circuits provided little or no voice to the corps that participated in them. Corps weren't allowed to make the rules, and that was a major tiff back when the split came to pass. Corps were fed up being dictated by what they saw as a small minded minority who held all the cards. So they left to do their own thing. What they did (provide a structure for corps to determine what was best for themselves) made a lot of sense to a lot of corps, and the organization grew.
40 years later, we have a small group of individuals who RUN DCI who are saying "You know what, we want to do our own thing, forget you guys." The major difference is the G7 corps HAVE the ability to do whatever they want. THEY ARE THE BOD. They can make the rules, they can do whatever they want provided they can get the other corps to agree with it. The other corps are saying "NO, this isn't in our best interst," while the G7 are simply saying "Well, eff off then."
They're pulling the exact same stunt they pulled on DCM about 10 years back. The top corps said "Hey, you know what, we want to move control over to DCI." They got the DCM corps to agree with it, provided that after a year, if it didn't work out for the DCM corps they would return the DCM structure. After a year when the DCM corps said "You know what...we like the way things were running with DCM." The top five said "Well..screw you guys. We're taking our toys and leaving."
The VFW in the 70's gave the corps no representation. The G7 simply want to take their toys and pout that they cant have everything they want, even if everything they want will cost the existence of every corps except for them.