I don't feel that Hurtado/Khaliavin have necessarily suffered what with being #2 behind S/K in their training group. In fact, I think in some ways they may have benefited a bit politically from the Russian association (of course I have no proof of that). Honestly, Hurtado/Khaliavin had a good quad--three top 7 placements at Euros, 2 GP medals, CS medals. I think there is a lot of second-guessing right now, when really, they have done well. Even last year after Sara's shoulder injury, they placed 11th at Worlds, which seemed fairly good considering the circumstances.
Things only really went off course this season. Unfortunately, H/D's programs this season just proved to be not the best selections strategically, in a year when Smart/Diaz had probably their best programs of their career. It seems that after the Grease RD, Smart/Diaz realized that their strength was crowd-pleasing, character-driven programs, so they went with that again this season in the FD, and it worked. Plus they had the advantage of not starting from scratch with the "Proud Mary" SD, but adapting something they had used before.
If Sara/Kirill had gone with more classic programs this season, which is more their strength IMO, they might have done better versus S/D. But they still did have quite a respectable season anyhow.