I still think they can compromise with a playable MH character by choosing Rider & Ratha as one. It's still having you play as a monster in at least some fashion.
Guys. They're not doing Monster Hunter Stories as our fighter. That's ridiculous.
I don't want to be the insufferable curmudgeon today, but I keep seeing a Rider with a Monstie tossed around because of the assumption that you
need a monster as a fighter somehow and it kinda irks me. Monster Hunter Stories is a
spinoff with two games. The second game sold about one and a half million copies, maybe a bit more. Monster Hunter Rise, which released around the same time, has sold
ten times that. The Sunbreak DLC
alone sold 8 million copies. I'm sure the Stories games are good, but they are in no way series-defining, and the mainline games are far and away the defining image of the series. They're not tossing that away and going for a spinoff title specifically just because we need a monster.
I'm have never played a second of MH but I feel like the fanbase would find it really darn weird if they repped monster hunter in the roster through the monster catching spinoff in some weird attempt to compromise the "best of both worlds". This reeks of when people thought we should cram multiple arms characters into a single slot to get the most bang for our buck, or maybe more if like someone said DQ should be repped character wise by Dragon Quest Monsters because then you could have an iconic spinoff character that sends out slime.
And as far as the mvci rumours go, they're just that: rumors. I'll believe it when I see it, but the sheer fact that they're fine with the hunter being the primary rep in stuff that came out afterwards like teppen and Astro Bot say otherwise to me about how they think MH can be represented in crossovers.
^^^
Aside from the strangeness of going for a spinoff just for a monster rep, the whole idea of "but Hunters can't be in crossovers!" falls apart when we have a Hunter in a fighting games already. And like you mentioned, the claim that it was against the MH devs' wishes is nothing but rumors. To this day, I have never seen a source for that claim.
That said, while it's true that there's no Hunter in Teppen, I will mention Astro Bot as a weird case. We only have a Palico Bot in Astro Bot proper, but we
do have a group of Bots with giant weapons around a campfire in Astro's Playroom, with no Palico in sight. I don't know why that's the case - Maybe the armor was giving the modeling team grief? - But it's worth noting.
Either way, Smah has a strong bias towards the player character when choosing the primary rep of the series, to the point they managed to break the longstanding traditions of not putting the DQ Heroes in crossover events or letting them meet. And we already have Rathalos as a boss, so the monsters can be represented pretty well that way. Logically speaking, I don't think the fandom's weird aversion to the Hunters holds much water.