A variation of this "representation" discussion was brought up way back when we all thought Tracer was coming as DLC thanks to Overwatch being ported. I agree with you 100%, that the fighters pass and Smash - no, games in general do not "need" characters to fill some sort of representation quota. If a character's only notable or redeeming quality is their race, gender, sexuality, etc, they aren't a character, they're an object. People acting like we need a female or need someone who, for lack of a better term would be a "diversity pick", are just being emblematic of a society that imho has allowed identity to be more important than character.
If we get a female character, I can almost assure you her status in gaming will be of much more consequence than her gender.
As an assumedly genderless star angel who politely took up the gender assigned to his host by a child, I think Geno's a hell of a diversity rep.