I haven't read that before but I'm pretty sure that Kahn is alive and hopefully playable.

They confirmed a while back that khan was gonna be in the game, alive, but not playable

Barakasblade Wrote: In the profile for Reptile it says he could either go to the deadly alliance or the "weakened" not dead Shao Khan

Is that apart of his MKDA profile? If so, then I think it referred to Kahn being weakened from his previous defeat at the hand of the Earth warriors during the MK3/MKt battles.

if shao kahn is alive then the dk can kiss his a$$ goodbye!! (shao kahn is bad as hell). if he comes back i want to see him beating the crap out of quan chi and shang tsung, and then when shang and quan are on the ground begging for mercy, shao kahn yells "you fools!". then he kicks off their heads!