Probably. There's a reason very few T.Hawks have ever done much of anything, and even with matchup unfamiliarity the few T.Hawks that exist aren't winning anything substantial. I think much of the problem is that Capcom doesn't seem to know what archetype they want T.Hawk to be. Is he a grappler? Is he a footsies character? Burst movement? Combos? Who the hell knows.
Say what you want about Hugo's matchup spread, at least the guy has the tools to do what he needs to do. He gets you in a corner, then you die. That's sensible grappler design. If he has significant viability problems it's likely due hybrid zoners who have too much damage output, like Evil Ryu, but he's a problem for almost everyone.
Honestly, the design of a character like Hugo is much more what I'd like out of grapplers in this game. When he gets in your face, it's completely terrifying. Sure, it's really hard for him to get there, but if he does, watch out. Compare this to someone like Bowser, for example, and he's not nearly as threatening (in fact, Bowser's best tool is unquestionably his UpB OOS, which requires you to pressure him!). I also note that when most people look for tools for characters to get better they're looking for mobility options like the Bowser Wavedash that allow them to play more like lighter characters, rather than ways or just making them deal additional damage.