Sure, ARA is much better.
It would be possible to transfer Melodyne to the track for which the region effect was created, just not all that easy. As a VST, Melodyne uses time or tempo information provided through the VST interface as a kind of framework against which it plays back the audio which you've transferred in. When you make changes, it more or less switches out the transferred audio, and instead plays back the Melodyne-modified audio.
As a Region effect, Melodyne still has to match audio timing information to tempo info received from the DAW. So, to transfer it to VST, one would simply convert the Region to the "transferred audio" component of the plugin, and then take the data set about the time at which the region/transfer starts and all the edits (which is something that could, for example, be represented as an XML file if necessary), and have Melodyne VST refer to that data set.
Melodyne implemented under ARA is still using the VST protocol. ARA is just an extension of VST.
However, while I believe it's possible to allow moving a Region effect to Track effect, as I said I really doubt that it will happen anytime soon.
Cloning is a different issue - I only brought it up as an example of the usefulness of the idea of moving the Region effect.
No need to really keep beating this dead horse. I think I have the facts right about region effects, though maybe I'm missing something...