Dante is not even remotely on the level of Dragon Quest.
Some of you are on some weird ****.
In Japan? You're completely right.
Outside of Japan? Devil May Cry has definitely a bigger fanbase, being more popular in the West.
I know you haven't said this, but after reading some posts I'll take the chance to give my opinion about this lol:
Honestly, I think some people understimates his popularity. He's not as known as Ryu or Megaman, but I mean... we're talking about ****ing Ryu and Megaman, super iconic characters that are even fairly known among people who doesn't play videogames. Very few characters can't match up those 2 if we talk about being iconic or not.
99% of the available options to add are characters that will make some people react "Who's this?", so that isn't exclusive to Dante.
Not saying he's worldwide known, or one of the most iconic videogame characters. He's not. But personally, I'd put him in the same category as Snake. Yes, Metal Gear Solid is more popular, or at least it was, but sometimes characters are as known as their series. Sometimes even certain characters are more known that their home series. Morrigan is an example of that. Maybe a hot tak, but I don't really think people would consider Snake a more popular name than Dante if Snake never got into Brawl.
While DMC isn't the biggest series in terms of sales, we're talking about one of the most popular new IPs of the PS2/Gamecube/Xbox generation. And said generation brought a lot of new IPs. For a lot of people, that generation was the peak for videogames.
I also don't think you have to be a Capcom follower or a fan of action games to know or have heard about Dante at some point like, at all.
Most Playstation users have heard about him or saw him at some point, at least. And when I say "Playstation users" I'm not including the casual market, because if we add those people to speculation, almost everything we discuss would be meaningless.
Basically I think most people that has been playing games for quite the time, or anyone who frequently searches for gaming news and all, have heard about Dante or Devil May Cry at some moment. DMC has sold like 23 million games, but obviously, it doesn't mean that only people who has played a DMC game knows him. Between memes, crossovers and Dante's own popularity, he's fairly recognizable. I'd dare to say, for people who hasn't played DMC.
Coincidentally, I think Phoenix Wright is another good example of this. Ace Attorney has sold like, 7? million, if I'm not mistaken. Therefore, some people would probably consider him a niche character, but c'mon, anyone who's into this hobby and lurks the internet has probably heard about "this Capcom game about a lawyer with a stupid hairstyle".
Similarly, I'd dare to say a good chunk of those people has heard about this "wacky woohoo guy with white hair, red jacket and 2 guns who does over the top things".