Forgive my naiveté everyone, but why can't there be two Karmapas? Is it not possible for a Master who has achieved the 3 bodies of a Buddha to appear in more than one aspect? Most certainly! Wouldn't it be harmonious and give rise to unbelievable benefits and beauty for both sides to have pure view and respect for both? Is Money and reputation and power really worth the damage this conflict has done? So strange.
Ho ho! Of course there could be two karmapas, there can be an infinite number of karmapas! Just the same with the two panchen lamas. It's amusing to think that all of us silly little beings, governments and the like, try to restrict the numbers or incarnation of tulkus in the world. This can be likened to the way that the tibetan government has also tried to ban the incarnation of tulkus throughout history - imagine! trying to ban Manjushri from incarnating into the world (there's an article on this, with many examples: Banning of Tulkus in History:
http://www.dorjeshugden.com/all-articles/the-controversy/banning-of-tulkus-in-history/)
Even if the name and the incarnation lineage is severed, the being will still return again to benefit beings with a different name. Will the government also try to hunt down all these other incarnations and ban them? and what if they appear in another religion? Or even as an aetheist? It's impossible!
In any case, in this day and age, it does seem slightly ridiculous that the secular government (and yes, the CTA are indeed the secular body - this has been made clear by the Dalai Lama himself), would be "deciding" upon the validity of an incarnated lama and endorsing the "right one", such a very spiritual matter. Either they validate them all - according to what is decreed by the respective high lamas within each school - or they don't validate any of them. Once they start putting their fingers in pies - acknowledging and supporting one, but not another, 'affirming' that one religious practice is good or not - that can only be called unnecessary interference. (again, another article on this, a powerful one about just how much damage the interferences have caused:
http://www.dorjeshugden.com/all-articles/features/is-it-interference/)