I really like the idea of a story designer akin to the wrestling games. That's a terrific idea, Mole.
Except it's a fighting game, it's doesn't need a story mode.
Especially not the vs. series, which works because it doesn't take itself seriously.
Fighting games fans mainly care about the fighting, they'll mainly spend the entire time playing online and practicing to get better.
Also Mole, they never hinted at a story mode. Besides, most fighting game fans don't care for that, since they just care about the fighting.
Another thing Mole, what you are mistakenly referring as "Alternate costumes", are actually alternate color schemes and Chris Baker referred them as such. All fighters have that in the event of a mirror match. So i'm not sure how you confused the two.
The model changes(Or "Alternate Costumes") are the things like Cap's Super Soldier costume or Dante Sparda costume(Which are out now).
As for the roster being smaller...... You do realise MvC2 just copy pasted sprites from previous games, right? It's also why the only viable characters were the God Tier 4. With MvC3 they started from scratch.
And get your facts straight slick, it's not a step back at all. Infact it was an improvement since in MvC3 every character is viable, while in MvC2, the roster may have be large, but most of the characters were useless aside from the god tier and the game was broken to hell.
And Btw, they made an effort to avoid Pallet Swaps like War Machine, so unless they updated him with new moves, he never had a shot, same goes for Ken. They wanted the characters to stand out. So did the fans for the fans for that matter, who didn't want "Shotos". Akuma was the only exception to this rule, because of his history with the series(They got the idea for the vs. series because he was a guest fighter in X-Men: Children of the Atom) and even then, there's a bigger difference between Ryu and Akuma, then with with Ryu and Ken.
In conclusion, they didn't "give us" shotos, because no one wanted them.
Also, stuff like Ryu training or Spider-Man saving the day is a waist of money. Most fighting game fans don't care about that. Besides, the trailer cinematics did that anyway.