Making the weaker characters do more damage isn't going to fix much besides Hsien Ko. The damage scaling is the problem. Even Thor who does huge damage get hurt by it badly just by using his c.m (his best normal unfortunately.) and his damage drops a lot because of all the hits it does. If Joe and Chun Li did only more damage they still wouldn't be able to compete with Magneto/Wolverine since they mulit hit so much it would scale them down.
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http://img401.imageshack.us/img401/33/shadowkenj.gif
LOL!!!! I hope that's a joke....names don't get more n00bish than that