I didn't forget Kenshi, he was integral to Takeda's story arc and expressed a motivation outside of jobbing (hunting the Red Dragon). You can say you want more but you can't say he had nothing (unlike Ferra/Torr, Ermac, etc).
Same goes for Quan, Mileena, Kano. You can say you wanted more for them, but you can't say they had nothing. They had characterization and purpose in the story mode that went beyond "just there to lose fights." You can't just replace Quan with Noob Saibot and have the story make sense. You can't replace Mileena with Baraka. You can't replace Kano with Tremor. Their roles in the story were unique to who they are. Whether they won or lost fights is immaterial.
As for whether Kotal losing to Kung Jin or Jacqui was good storytelling or not? No, I don't think it was, but then again that's not the point of this conversation.