Since he is dead all these souls have been released, so it is perfect speculation to think that old dead characters will be coming back, because now they don't really even need much of a story. Mk is just setting this up for new and old characters to be secret's in this game or playable in the next.
maybe since he died, he might be able to come back if he can keep his soul or something, and come back in his original form
http://tabmok99.mk5.org/shangtsung-true-form.jpg or in his old man state like mk1.
I would love to see either one of these happen
http://tabmok99.mk5.org/shangtsung-true-form.jpg