The Geno as 2,5 part character was interesting, hope it's true althought i wouldn't mind if megaman comes in, i still prefer black mage or bomberman...
No FF characters because the couldn't choice something really FF spicy in the vast universe? well, we have made that choice! Black Mage! his wholeness just screams FF, could be a clasic NES/Snes, a FF tactics or the more newer games like Vivi...
generic? well, pikachu, Mrgame&Watch, jigglypuff, pkmn trainer (maybe in teh game was only one RED, but the game was designed to fight via cable link, so you could fight against hordes of other "REDS" and would be still canon to the game... i think that is why the decided to name it PKMN trainer... ) even Yoshi is generic, but they still are in the game because they have some personality, and are significant and ABOVE ALL, memorable... so it is Black Mage...
also, if Squaresayed that, it means that it had at least some interest in brawl.. what that could mean?