I feel like someone on tv (Nastia maybe?) said that the US is the reason that it went from 7 gymnasts to 5. Anyone know the history there? What's the reason for the change again to 4 plus 2 specialists?
I can't answer the former, as for the latter...
It's because the current system is a huge disadvantage for individual event specialist who come from countries that can't field a full team. Event specialist such as Krisztián Berki(Hungarian, 2012 Olympics gold medalist on pommel horse), Dipa Karmakar (Indian, vault specialist) etc. come from countries where fielding/qualifying a full team is impossible. Right now event specialist only have ONE way of qualifying to the Olympics and that's to get onto the podium at the World Championships prior to the upcoming Olympic games.
Krisztián Berki had an off day during WC 2015 which basically ended his journey for Rio, the only other way he could qualify for the Olympics was to compete at the Rio test event as an AA (they ONLY let you qualify through AA if you don't have a team) and he doesn't train in all 6 events. And even if he started training on the others immediately, it would be difficult to qualify in the top 24 for someone who's never competed AA. Dipa Karmakar went against the odds and qualified herself through AA at the Rio test event, so a huge pat on the back to her, but it's more difficult for men with 6 apparatus.
The current system leaves out a lot of the best specialist around the world and places a huge amount of pressure at one competition (WC). The new system allows specialist to qualify through world challenge cup, which don't place as much pressure on the athlete and is spread throughout the year. This system will benefit teams like the Chinese MAG who have single-event specialist who can almost definitely get gold at the Olympics in their event but because they can't contribute to the TF, get left out.
Also, the new system allows top 20(WAG)/ 12(MAG) AA finishers to earn an automatic berth to the Olympics (if their teams haven't already qualified) so people like Larisa Iordache don't get screwed over again. The idea behind not having AA podium finishers given a berth to the Olympics was because it wasn't common for a podium finisher to come from a country that didn't already qualify a team to the Olympics... but Larisa Iordache and Manrique Larduet (Cuba, placed 2nd AA at WC 2015) happened. Luckily for Manrique, he qualified through his bronze in HB.
Here's a summary:
ETA: Wanted to include that previously only teams that qualified in the top 24 in the 2nd year WC are allowed to compete at the 3rd year WC (Olympic qualifying year), the new system allows any country who can field a team to compete for a team spot at the 3rd year WC now.
I believe this also means the Olympic Test event would be irrelevant in terms of qualifying for the Olympics, which would be really unfortunate for countries that have exceptional Juniors who turn Seniors in Olympic year allowing them to form a strong team (France and Belgium WAG this year qualified through Rio Test event with a couple of 2000-born on their teams).