Even if there are very less passenger trains passing through a station, its called a junction where it branches out to two different routes, the reason for nomenclature is different. As far as KSK diversion is concerned, the existing route is shorter than via raichur. I do agree with you however that a train to bangalore from hyderabad would be good in this route, probably YPR-KCG Express can operate in this route which would actually avoid reversal at GTL.