Meh... best to keep everything the way it is for now and just scale XF back to where LVL3 is LVL2 and LVL2 is LVL1 etc. It would automatically take out all the LVL3 XFC bull shit in the game and nerf Phoenix to a more acceptable level.
After that go for specific speed reductions to take out all the LVL2 XFC loops and broken stuff. Most of the broken stuff in the game comes from increased speed during XFC and that's mostly during LVL3. There is no reason to be giving characters like Wesker increased attack speed during XFC, that gun loop should never exist.
Phoenix is a powerful character but X Factor takes precedence right now. Scaling back XFC is an automatic nerf to Phoenix. No one is going to complain about an X Factor nerf.
Magneto
C.Viper
Jill
MODOK
Amaterasu
best utility characters:
Wesker
Storm
Zero
Dormammu
Trish
best anchors:
Dante
Amaterasu
Morrigan
Chun-Li
Sentinel
I would make the list more like this:
Best Point Characters (Rushdown edition - These characters are some of the best at rushdown, build meter like crazy and don't rely on meter to do high damage. They do however rely on assists to be at their bests. )
*Magneto
*Wolverine
*C. Viper
*She Hulk
*Jill
*X-23
(Honorable mentions to Felicia, Thor, Viewtiful Joe and Spider Man. These guys have potential and Felicia can be played as Anchor for her X Factor boosts too)
Best Point Characters (Zoning edition - Same as rushdown but these characters like to zone and control space while building meter and punishing mistakes)
*Deadpool
*MODOK
*Chris
*Arthur
*Ryu
Best Utility Characters (Safe DHC option, always good to DHC into, great user of meter, generally good all around game)
*Dormammu
*Storm
*Trish
*Zero
*Shuma Gorath
Best Anchor Characters (Absurd X Factor bonuses, good assists, good users of meter, comeback potential and other special properties)
*Phoenix
*Sentinel
*Chun Li
*Akuma
*Morrigan
Best All Around Characters (these characters can play at any of the 3 positions because of their versatility. These characters have good/great assists, safe DHC options, comeback potentials, meter building ability and can play solo as well as being better with assists in the bag).
*Wesker
*Dante
*Amaterasu
*Taskmaster
*Iron Man
*Spencer
*Super Skrull
Best Assist Characters (these characters have assists that are so good that you want them on your team for their assists alone)
*Tron
*Dr Doom
*Haggar
*Hsien Ko
*Hulk (IMO his Anti-Air Gamma Charge is really good for its "get off me" potential)
*Arthur (Gold Armor Bottle toss)
I don't know where to put Captain America but I am really digging his
Shield Slash assist. It's so underrated, people are totally sleeping on it. Too bad he sucks without assists, you have to play him either at Point or at 2nd Utility character but there are better options at that spot.