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I'm being charitable because I'm being reasonable. Having billions of dollars doesn't mean that you have infinite resources. There are a finite number of people on this planet who has the necessary skills to do what needs to be done. There's also a finite amount of time to complete a project. Even if there was an infinite talent pool, there's still the profitability limit to the project. If it costs $400 million to make a project, but you can only bring in $200 million, then that project is not worth doing.
But let's just pretend it's not a money, talent, or time issue. Would the game be better or worse if you have 1000 characters instead of 250? I would argue that it would be worse. Balancing 1000 characters means that you're going to wind up with 900 characters that aren't useful in the game. 900 characters that they spent time and money on developing that won't get used.
Here's my proposal: just treat it like the card game.
1.) They stay the course. They ignore the complaints and put out this game.
2.) Next year when they put out the inevitable remake of some other region, they use the same engine.
3.) They limit the remake game to just the Pokémon in that game.
4.) If the player buys both games, they can use any character from either game in an expanded format online. But standard format is limited to the character within each game.