I don't mind it at all. I've stated numerous times that I'm not a fan of Kung Lao but I get it. He's a staple in the series and very popular, especially with expert and casual players alike. As this game is geared towards tournaments, it makes sense from a money standpoint. People saying "NRS is bowing to fanboy pressure" aren't taking into account how a business works. They have to put things in that have been shown to make money or there will be no future Mortal Kombat games. If there's no revenue being generated, the series becomes a liability. We don't want that, do we?
Kitana, on the other hand, is THEE female MK character. The few chicks I know that play the game stick to her. That sort of thing doesn't happen by accident. She's a woman, she looks sexy, and most importantly, can kick a lot of ass. Let's not forget the fact that she's also part of many different storylines, ranging from the love angle with Liu Kang (who is the hero of the whole damn series) to her feud with Mileena, another hugely popular female character. Killing her off for the rest of the franchise would not be smart. Letting her sit out a game or two? I can see that but again, it comes down to what is popular because what is popular will make money. Money makes new games possible. Get what I'm saying?
That being said, I don't want to see too many more "dead" characters being revived. Sindel's massacre was epic and there should be some lingering aftermath of that to put it over. Kabal, Stryker, and Jax staying dead would be fine by me. I'd much rather see them survived by family members. For instance, Jax's having a son and Stryker having a brother to replace them would be pretty cool, I think.