Just because a Kabal player or reset-using Smoke/Cyrax doesn't make top 16/8 doesn't mean that they didn't win a match they shouldn't have by virtue of their character.
Characters like Kabal, KL, etc. and the use of resets allow lesser skilled players to compete with, and beat, people who are otherwise significantly their better.
Lets take me for example, a Baraka player. I'm no super-amazing top player, but I'm good.
With my character I have to constantly be aware of my spacing, be able to intelligently mix my moves up, have good reactions to AA and counterpoke, and just generally play a solid footsies game.
With a Kabal player they just have to PFFFFFFFFFFFFTIAGBF4SWORDSSAW.
They get pretty much free reign to do whatever, whenever, to pretty much the entire cast, and one character who may fair better against one aspect of his usually gets whipped by the other.
So, are you going to tell me that if I get beat by a Kabal player, he's always the better player, period?
Now what if I hadn't played a Kabal player? What if I'd gotten a Kitana, Reptile, Jax? Those characters are much more in line with how the game is designed and actually require real thought to play, and the winner will almost always come down to who plays the stronger footsie game.
Now, lets take an example of a top player, like Dizzy.
Do you really think Dizzy wouldn't be making top 3 or winning every tourny he goes to if there were no Kabals/Kenshis?
If there is any player who has a mastery over EVERY aspect of this game it's him, and yet he gets shut down by those characters time and time again.