If that's the case, there's probably negative feedback from fans towards this. I hate how Street Fighter's gone srs bsnss now.. I miss the comedic aspects of the series myself.
There actually hasn't been. For the most part it seems as if the majority of the fanbase just shrugged their shoulders and went on with their lives.
Honestly, this game has enough joke characters, even if they are sony exclusive (Though honestly I'd be surprised if Pacman and Megaman didn't end up being free or exceedingly cheap dlc for the 360). There was actually more backlash when it was announced that he would be in SF4 than there was when Ono said he was dead in SFxT.
I honestly think that Dan will be in the game somehow.
Probably Dlc.
Personally I don't see that happening. Like I said, he's not a terribly popular character anyway, and he doesn't exist for any other purpose than to be a terrible character to play as. Serving as the trial mode dummy is probably the most useful he's ever been.