Both groups were almost like two sides of the same coin.
Kool & The Gang started in 1969/1970 with James Brown styled funk fused with Jazz.
Cameo came out right before J.T. Taylor joined Kool & The Gang.
Kool & The Gang had a song on a Disco movie soundtrack.
Cameo had a song on a Disco movie soundtrack.
Kool & The Gang went in a Pop direction in the 1980's.
Cameo went in a Rock/New Wave direction in the 1980's.
Both groups were trying to crossover to different(mainly White) markets.
Kool & The Gang wanted AC/Pop/Top 40 hits.
Cameo wanted Rock/MTV/Top 40 hits.
I think you're right about that. But with Cameo it was wayyyy more subtle and they didn't sacrifice funk or musical integrity.