If anything, the problem with Tekken's roster is fucking dinosaurs, robots, bears, kangaroos and devils. Not people. No matter their dress sense. It would be awfully nice to have a fighting game which didn't have an element of the ludicrous for once.
There are plenty of fighters like that. Try Virtua Fighter some time, it's pretty good.
My issue with Lucky Chloe is that she looks completely ridiculous, not simply because she's a catgirl, but because she looks completely docile.
Tekken has a lot of ridiculous characters like Alisa, Lars, and Kuma, but all of them have competent, brutal attacks and at least seem like they can put up a fight. Even Xiaoyu is a convincing martial artist. On the other hand, Lucky Chloe is doing all sorts of flamboyant, pathetic backflips and breakdances and archetypically "girly" poses. Mind you, Lucky Chloe isn't doing anything Lili isn't doing, but what pushes it over the edge is that she's does all this...while wearing a fucking catsuit and a tutu.
She sticks out like a sore thumb against every other fighter in the game; she's so visually jarring here that I'd rather her be removed entirely, or at the very least, reskinned. I don't hate lolis or cute-as-a-button characters or what have you, but anything that looks like Lucky Chloe has no place in Tekken as far as I'm concerned.
That pretty accurately describes my feelings.