I'd rather have 16 well designed characters.
We basically got that with XII. It didn't turn out so well.
I mean, you can't really blame SNKP for not trying multiple ways to approach KoF's issues of creation. It's a series that got a lot of it's memorable features (Large movelist and cast + variants, loads of character personality in and out of battle) from the fact that it was a yearly series that had to be fresh, while still being creatable per year.
Basically every game and genre that entered the "HD Era" lost a major amount of charm and features when they updated. Some companies just managed the transition better.
It's not looking perfect, or exactly like any of us have dreamed, but I'm more and more excited about a KoF that potentially brings back a lot of what was lost since SNKP made pixel beauty on a suicidal budget.
A 50 character roster is a hell of a lot of groundwork for SNKP to hopefully start bringing it's series into the modern age, and keeping this one improving, instead of having to constantly make 1-offs each generation, with a need to start over from scratch each time.
It'd be a lot easier to bring THIS game up to "Xrd's new standard" of 2.5D design, than what we had in XIII, y'know?