I don't think there's any conspiracy here - Capitol even sprung for videos for the 1989 singles. "Kokomo" was on Elektra purely because the soundtrack album was - the Capitol album deal came in the wake of "Kokomo"'s success. I don't see a major company signing someone just to bury them. Why ? Not impossible... but hugely unlikely.
excellent responses AGD!
Record execs are not adverse to that type of bad behavior - They send a limo out for it!
It is far more likely that the Love RRHOF incident helped put the backing in place that made it possible for Kokomo to become a hit - than the opposite.