They had plenty of characters that they could just drop in who were way better. It took them until 3rd Strike to bring back Chun-Li. Like you said, it was the perfect time to bring back Guile. Instead we get Alex, who no one cares about. On top of that they decided to make Alex the "main character". Metal Gear Solid 2. Raiden. Etc. They axed everyone except Ryu and Ken, and threw in a cast with exactly zero charisma. Well... Ibuki was good I suppose. And I kind of like Makoto. They also finally hit the point of pushing the shotokan shit too far with Sean. I excused them for Dan because he was basically a joke character, but Sean pushed it over the edge. It's just like Mortal Combat with all the SubZero/Scorpion clones.
And for anyone who has played though Warzard. Have you seen Tessa's second ending? What the fuck? At least I got to see a little skin I guess.