They aren't going to change some stubby limbs. That's part of the game's design, because it forces people to get closer since the game is more offensively based. Balrog's stubby ass normals are okay because he has the tools to move around, mount offense, and some decent AA tools. So while his range isn't all that good besides a few buttons, his tools compensate for that.
In comparison, Ryu's nerfs highlight the problem of having stubby limbs with a limited toolset. Before, he had damage, stun, and was fairly good at capitalizing on openings. But he still had to get close enough for the oppression to happen.
They scaled back the range on his moves AND took away his damage, leaving him nothing. So now, you have this character that can't get his work going.
Even with other characters, the offense is just too much with the lack of good reversals and means of escape. Like, you need to be able to get people off you. So basically, you need to give people a means of darting out, and not just in.
You gotta let the characters breathe once and a while and let them work.
Edit: While they aren't going to change stubby limbs, the hitboxes can be extended, obviously. Which is why what they did to Ryu is bullshit.