The fact that Harada basically says "You Western folk don't like Chloe? Well, then maybe I'll make some big, tough guy because that's what you Westerners like" is very telling of the actual problem.
It's not that Chloe is "TOO WACKY FOR TEKKEN". She's not.
It's not that idol-like characters are "too sexy" for Tekken. Tekken is filled with sexy. Female AND male. And, I don't think Chloe is particularly provocative, anyways.
The problem is that characters like Chloe and Harada's subsequent response seem to demonstrate creative bankruptcy.
"Hey, here's a common Japanese trope: cutesy, anime idol girl! What, you don't like that, Westerners? Then, here's another trope in response: Big, muscular, Western tough guy. That's what you like, isn't it?"
As if he can only speak in "tropes". There is no subtlety or innovation in the character designs anymore. How many young, giggling, dancing, immature female characters does this series need anyways?
How many female Tekken characters with actual relevancy, potential, and *gasp* maturity have been gradually put out to pasture in favor of "immature, cute girl" already? Why the heck is a central character like Jun STILL a completely mystery nearly 20 years later...yet Ling Xiaoyu, ditsy animu girl who dances with pandas, has starred in movies.
Can we get something a little DIFFERENT now? Are these our only choices? "Cutesy, young girl" trope and "big, soulless muscular guy" trope? Personally, I'd like to think that female characters have much more potential than THIS, time after time after time. Marie Rose, literally JUST came out, geez.
Hey, what about cutesy, dancing, posing anime...GUY? What about big, grizzled, muscular, battle hardened...WOMAN? See how easy it is to subvert overused tropes?