Honestly, I'm in the middle here.
Yes, there's still quite a lot of major Japanese franchises and characters, the dividing line between which of these are major and which of these are characters your Average Joes / Janes may know about is very blurry and difficult to distinguish. There are only a few that I could confidently say Average Joes / Janes know about on the regular, and that's the first five Jordan named, Dark Souls, Dynasty Warriors if you happen to live in East Asia by virtue of its setting and inspiration. Sora I'd argue is close but not fully there,
Western characters are largely untapped though, with Steve being the first bonafide icon (and I have a very high bar for icon status). Sure, Nintendo doesn't need to include them, but there are no real barriers to them either. It becomes something of a judgement call for Nintendo then, especially in terms of DLC. But if they've included characters like
- who had like 90 % of his presence in America (granted, base game, but still applies to some extent)* - I def don't think that they're off the table.
Now, while I don't think that the chances of the last two being icons is that high - there's an argument to be made that Steve and Sephiroth were it - I won't count that out because while precedence is a thing Nintendo have also shown willingness to throw precedence out of the ****ing window. Plus, this is a two year window we're talking about, so it's fully possible that Steve / Sephiroth were intended to headline Year 1 of FP2. We'll have to see when the fat lady sings though.
*(Japanese players were mostly completely wondering "
WTF?" at his addition. Sidenote: I find it super-weird that they went with the original arcade game for most of his gameplay-related stuff. I've complained about his gameplay enough though.)