Oh dear God, is this still going on after they nerfed his Upball?
Seriously people, if you think Kano is the "God of All things Online", you really need to learn to play.
1. stop using jump ins to start your combo strings! You jump, you eat an upball. You jump vs Cage, you eat a flipkick. You jump vs Ermac, you get TK slammed. You jump vs Sheeva, you get air grabbed (didn't see that one coming huh :-p). Adapt to your opponent, don't just blindly expect the combos you copied from Youtube to work against a player with half a brain.
Dash in, block the upball, punish it. It can't hit you outside of sweeping range. Just keep in mind that if it didn't hit your block, it recovers significantly faster.
2. Doing combos with Kano online is nearly impossible due to the strict timing required. No need to fear those, since they'll whiff 2/3 times
3. Kano's overhead is incredibly slow and punishable. Use that to your advantage. So block low. A lot. Stop crouching when you see him going for the overhead. You'll be faster, trust me.
4. If you can deal with Noob or Sindel or Stryker spamming ranged, you can deal with Kano's knives too. He has a fast animation recovery, but the projectiles themselves don't travel all that much faster than anyone else's. It's harder to punish his knives with a teleport, true. Boohoo, I'm sorry they took away your "i win" button. Jump over them and dash the final distance (to avoid an upball). Or use a special EX with armour (Jax's fist, Nightwolfs shoulder, Reptiles Dash, etc...) to completely brush the knife aside.
I apologize if the above might come across kinda harsh, but I really don't get all this whining about Kano when so many other characters have such a plethora of great moves themselves. So use them and don't be afraid to adapt your playstyle depending on your opponent.