I would have no problem with Hollow Knight becoming the first playable Indie over Shantae. It would also please me that he beat Shovel Knight (I have obj reasons for not wanting him, not just the constant anti-Shantae talk).
If you add all the sword techniques and some of the internatice charms, I think there's a decent moveset for The Knight itself. But since I could see Hornet actually taunt and grunt when hurt, plus being the sequel's main character, I could also see her being just as likely.
Lilac would be so cool. Would she work as a Sonic echo? Becuase she's essentially Blaze with most of Shantae's personality, but shes physical like Sonic without the fire. Or is the stuff later on in FP too different? I don't know the game well from stopping midway.
You're right that Hollow Knight doesnt have personality, which is his thing being a lifeless soul, and that is a knock towards him. Ultimate did make changes to add in personality to characters when it could (Zelda). That's the main reason why Hornet would be more welcomed. She has a clear personality and im sure Sakurai would have fun with her needle/ thread and abilities.
Not gonna lie though, Hollow Kirby Knight would be the cutest thing ever.