boon said when they made mkda that "we cant give shang every move in the game" because from the way he used to morph, that was the case.

a while ago i came up with the idea for shang to keep his morph and still have other fighters competitive with him.

shangs styles - snake crane and straight sword would remain throughout his morphing, only his appearance and special moves would change.

he could morph to subzero (classic) and acquire the freeze and slide special moves but still work in snake and crane - he would no longer have the fireball moves but perhaps he could keep one of his own specials like soul steel no matter who he morphed into.
and he would only morph into a "weakened" or incomplete version of other characters so he wouldnt be equipped with all their special moves - just one or two and maybe one of his own. then moves like subby's slide or kano's cannonball could add another hit or two to his nake/crane combos.

it shouldnt be two hard on lag with the disc coz you arent loading a whole new character into the game - just changing the appearance and slightly altering the movesets. should be no harder than swapping from style to style.