Terry also more or less fits the bill. King of Fighters is nowhere near as active as it used to be in the 90's. The last thing people heard about it was a rule 63 spin-off game that sold poorly, so that game was definitely added for reasons similar to Banjo more than anything else.

Besides, I am not sure why people think this argument had any merit ever to begin with:

And, IIRC, this was said on the Terry gameplay video, so there you go. It does not stop being true the moment it personally inconveniences you.

Arms is at an odd place where it's not relevant, but it's not nostalgic either.
I'm all for a character in the game though, it just seems like a choice at this specific point unless they plan to release a sequel.