I don't think SC is popular enough in Japan to warrant an Arcade Edition. The sales numbers are significantly higher in the West, and arcades have pretty much died out here.
I don't think SC is popular now in Japan as it was back then. System-wise is one factor (since Japan are Arcade and Nintendo freaks). I personally do think Arcade could keep it back up to its feet as far as keeping players (or Japan at least) interested in wanting more of playing the game as it did back then (SB-SCII, and SCIII in the long run), as it did for other games recently (SFIV, VF5, T6, Blazblue), and as it is doing for other games coming out this year (TTT2, VF5: FS)
There are exceptions though as far as the competition: Mortal Kombat (Ratings and "Graphic" violence, appealing to the West, and not to mention the game was HUGE in marketing), Marvel Vs. Capcom 3 (I personally think the hype of this series returning after almost a decade from the last one was a big factor to this one), Dead or Alive 4 (Sex sold this game, even though the game itself was amazing visually), and upcoming Street Fighter X Tekken (the title says it all).
Will there ever be a Nintendo release for SC? I honestly don't know. I'm not so sure if SC's recent graphics could be capable for Nintendo consoles, or at least for the Wii anyways. I could see some potential in Wii-U though once the next game comes by, but that's just me.
I'm only comparing this to Soul Calibur II.
-Their favourite character(s) is gone.
I do think this isn't a good reason to not like the game, even though Talim being absent was questionable. Fans, especially newer fans, should have known a long time ago that Namco was more willing to do time-skips and replacing characters. Older Tekken fans were more aware of this when they did it on T3. I was more aware of this when they did it for this game, and I was pleased with it, even though I didn't like Alpha Patroklos at first.
Replacements are fine, but the problem was how PS handled it with this game. We already know where some characters are (Xianghua, Sophitia, Taki, Kilik, and Setsuka, even though they added her relevance AFTER the release of the game), but what about others? You'd think they would reveal where Cassandra is during the timeline since they are so focused on the Alexandxx family, but i guess it truely all revolves around Sophitia.