Unfortunate that we won't see Shang's morphing ability once again. Programming restrictions. I hope that one day, it could happen.

I think the best way to handle Shang's morphs is something I think Bleed mentioned a while back (probably around two years ago). Shang should not be able to morph into other playable characters. He should, however, have a small selection of "souls" to morph into. Various warriors and/or monsters he's defeated over time. So you'd have maybe 4 different morphs, all loaded into the RAM along with Shang himself.