This was all in context of the Smash Ballot so I'm talking about popularity among Smash fans. That said, keep in mind these things are not mutually exclusive. Characters that are more well known will have some push for Smash. Terry not having that is also indicative that he's not popular in the greater scheme of things, though I'll get to that in a minute.
About your first point, that's fine then. I never meant that Terry was a super popular request among Smash fans, because he obviously wasn't.
But about the rest, I don't really agree. I mean, I see what you mean with that, but that doesn't seem like a good way to judge popularity. Characters such as Master Chief, Dante or Crash Bandicoot weren't really considered 5 years ago, they were more talked than Terry? Yeah, sure, but they weren't perceived as candidates for different reasons. That means they aren't really that popular? I doubt it.
If people had to be reminded of a company's legacy then they don't have a legacy in the way we're using the term. If SNK was forgotten, then it didn't have an impact on gaming for most people. SNK's fighting game prowess was a product of the time. They rode the wave of Fighting Games created by Street Fighter (this is why Sakurai had to defend the series as not being a Street Fighter clone, which he's correct on but misses the point of why people say that). Once the ride ended, so did SNK. Other fighting games were able to carve out a legacy for themselves, like Tekken, Soul Caliber, the VS games, Guilty Gear, Virtua Fighter for a while ect. But Fatal Fury died with the end of the 90s fighting game craze. Basically, Fatal Fury didn't leave a mark on gaming. This is why King of Fighters is a niche series despite having 14 titles and why people responded with "who" when seeing Terry. The reason you see people talking about him now is because he's in Smash and every character gets that treatment.
I don't think you're being really fair with all of this. Fighting games aren't the most mainstream games to begin with, and SNK maybe didn't reached certain big places such as USA as they would like back then. That doesn't help at all.
Then, they were in bankrupt, which evidently isn't good for them and their presence in the industry. You put all these things together and that's some serious damage.
SNK main focus were fighting games, so naturally if fighting games lost their momentum that won't be good news for SNK. I don't see anything strange with that.
Those series did indeed carve out a legacy for themselves... but it's not like Fatal Fury and specially KoF weren't able to do the same. As far as I understand you're saying that popularity is strongly tied to the meaning of legacy, which I partially agree with, but then you're throwing names such as Guilty Gear or Virtua Fighter there. Those franchises indeed had legacy, don't mistake me. I mean, my profile pic is Millia Rage from Guilty Gear. But I strongly doubt Guilty Gear or even Virtua Fighter games are more popular than King of Fighters.
People would have said "who" as well if instead of Terry they had added Sol Badguy or Akira Yuki, and you know it.
As I said in previous messages, I don't really think the Smash community, or at least a good portion of it, it's a good barometer for testing who's popular and who's not. You can be a popular character and that doesn't mean you have to be known everywhere, and if we keep in mind all what I have said before (SNK's bankruptcy, fighting games being less popular, USA not being the strongest market for SNK), plus the fact that you have a lot of young people playing Smash nowadays and that the best momentum of Terry Bogard and his games weren't precisely the last few years, that gives you what we had.
Also, is not really a surprise for anyone that the Smash community doesn't really overlap that much with the FGC community. Saying otherwise isn't really accurate.
This somewhat reminds me of Dragon Quest situation, it isn't super popular everywhere, but that doesn't mean it has no legacy.
Being in Smash draws eyes to you, that's obvious and I already stated that in my previous post. But as I also said, Smash Bros isn't the only existing game in the world. If that was the case, then I'd agree with you about people talking about Terry only after his inclusion, but luckily this industry has a lot more to offer than Smash.
The reason I say people are being revisionist is because they are putting SNK on a pedestal they wouldn't be on if Terry wasn't in Smash. If he were never added to Smash, the discussion would be "Of course they wouldn't add an SNK character. They're irrelevant and Fatal Fury was in the shadows of Street Fighter". These are all true statements but it gets twisted because Terry is in Smash and because he's in Smash, it must be because he's super duper important to gaming.
I get that, and while for sure you have the usual person who goes from "who's this" to "this character is the most important one in gaming" in 5 seconds, that happens with every character. Some people didn't heard about Persona until Joker happened, and now some of them are diehard fans and praise the series. Some people dismissed Dragon Quest, then Hero happened and now more people are getting into the series and realizing that the series was really important to JRPGs.
People can be wrong and then change their opinions. Yeah, most of people never thought that an SNK character was possible until it happened, I never thought about that. But I also never thought about Persona in Smash, it just never crossed my mind, and I think we all can agree that the Persona series is being pretty popular the last years.
People can learn as well. Maybe Smash fans never said "SNK was an important developer, a character from them would make sense", that's true, but SNK not being considered doesn't mean that now we're living in a revisionism phase. People is constantly learning new things, and you could put it like Smash players are being revisionists, but you can also describe it as the fact that people are realizing and learning about SNK's history and importance in gaming.
In the end, I don't know who's really twisting this. Granted, any character who gets in Smash will get some extra love, I won't discuss that, but no one's saying Terry's was the most relevant character for gaming. Banjo is more popular within this community than Terry, and in the grand scheme of things B&K isn't really bigger than him by any means. That means Banjo and his games are being glorified because he was added to Smash, and that he never was really that popular?
I never considered Banjo & Kazooie to be as popular in the general landscape of gaming as some said, but I'd never deny his popularity, for example.
A character can be added to Smash for reasons other than they're important to gaming or are super popular. Sakurai probably added him because he likes Fatal Fury and fighting games. You can see that in how he talks about it. It's fine if a character gets added to Smash that is niche. They don't have to become the most important character of all time and that be the reason for their inclusion. I think people do this because they need to feel like characters get in for being important (and so they can use that as a line of argument when discussing characters).
I agree with you there. A character can be added for different or multiple reasons beyond popularity. If everything was about just popularity, we would have a Fortnite character.
And while people can sometimes exaggerate or twist certain things to justify an inclusion in a way they like, this is something that not only would affect Terry, but probably most of the roster.
In any case, I don't agree with Terry being overall a niche character, but even if he was, that still doesn't take away SNK's legacy. A lot of games and series are important and relevant in it's own way even if those series aren't really heavy hitters, such as Guilty Gear, which we mentioned before.
The series is a staple for anime fighting games since 1998, that's something most people agree with, and if the franchise ended getting a character in Smash, you could expect more people bringing that point to the table. That would mean people are changing the history and being revisionist in order to justify that inclusion? Obviously not.