Yes.
And I'm open to arguments to the contrary on this one, because I can be wrong.
I'll give arbitrary a shot and maybe try real world impact at a later time, because the intersection of sports and global politics is what drew me to follow this sport more closely.
On Arbitrary:
It's a tricky thing because once you invoke sportswashing, you are already in the realm of propaganda. It is a propaganda term use to counter state propaganda by means of sports. In the realm of propaganda, unlike say debate or academic discourse, you can disadvantage yourself or reduce your impact by limiting the scope and ambit of the "tools" at your disposal, in this case the seemingly ill-defined term. So it becomes one of those "you know it when you see it" things because it is a weapon in a dialectic rather than a precision instrument. You want to preserve and optimize the efficacy of your weapons, so to speak, so defining it in such a way as to blunt its force is not helpful.
It is arbitrary in the sense that is used by mostly western journalists and activists as a linguistic social cudgel to point out human rights abuses and enact change. But some of this may also be a matter of practicality and/or triage, if you will. Sure there may be some instances under some definitions where you could label a Morocco or a Rwanda as sportwashers, but why beat that drum to death? They are relatively small players in the global order, whereas your Saudi Arabias, Qatars (e.g. real estate in London) and Chinas a real players with real purchase in global realpolitik. So, if you are reading the deployment of the term charitably (primarily meaning setting aside any accusations of hypocrisy of said western journalists' own countries), what may come across as "arbitrary" might actually be a concerted, triaged effort by activists and journalists to target the worst, most-resourced abusers with the most global purchase. Succeed in these efforts and the rest of the global dominoes will fall into place in terms of aligning global norms and practices with some baseline notion of human rights.
At the end of the day, if activists or journalists see a highlight or reduction of human rights or other abuses as a result of the selective, focused deployment of the term, it should be a net win for them, no? Even if they have not defined the term with precision or deployed it with equal vigor in every instance to which it applies. Change takes targeted, concerted effort which, in the fog of a propaganda war, may come across as arbitrariness.
I just pulled this out of my arse, so hack away with pleasure.