I'm sure Cloud is going to be fine, and fun and all as a character, but I really think there were better picks. I mean, pretty sure Sakurai chose him because of wanting to add the limit break characteristic in order to help the game keep evolving which is fine.
But come on Nintendo, have some pride! This is the game when Square broke ties with you! Cloud has never been on a Nintendo console (correct if wrong), and as someone said before, this brings us one step closer to Goku and Sponge Bob.. god forbid.. The only light at the end of the tunnel, for me at least, is that if they are clearly going for iconic and hopefully nostalgic characters, that Simon Belmont's chances have just risen quite a bit.
I'm glad to see new and inventive content being brought to the game, but I feel like this could be a step in the wrong direction. Let's just hope they don't start getting carried away with it.