I still think he might be a little much, but heres a thought on PH costume ideas:
Pyramid Head classic (w/ Giant Knife)
The Butcher (W/ Giant Cleaver)
The Bogeyman (W/ Cinderblock Hammer)
All three effectively hold the same role in their respective games, a slow, lumbering giant with an irrationally large weapon. The movesets would still be the same, and the hit range would be about the same (just enlarge the cleaver!).
I think the full original costumes for all 3 would also be awsome DLC for SH: Book of memories, wich is sadly lacking in its character looks department.
I don't mean to be perdanting but... that's a fans generation, not a post from devs.
Further it kind of exemplifies what I'm talking about. He'd be really hard to tone down the violence on. He's basically ALWAYS surrounded by gore, death, dismemberment, disfigurment, and all other manner of stomach turning fleshcraft.
Don't get me wrong, I think he'd be a good character, just not for the general rating their shooting for. It'd be like putting Tyrant from RE in SSB, he's a massive outlier in terms of age appropriateness.
I fully agree the game is shooting for a T rating, and that's my point. Violence and language are one thing. Blood and gore are another. In order to tone down PH, you have to sever him from a great deal of the SH mythos. Which is largely graphic gore and horror. Really, that's its big claim. Even RE got by far more on the monsters and suspense by comparision. Basicallly, in toning him down, you lose a great deal of his glory.
Ignoring the blood n' guts, there is really only one logical reason I wouldn't want PH in a game like this, and that's speed. Unless he has alternate weapons, like his spear from the last fight of SH2, he's traded all speed for power and reach. Ranged characters like Radec would obliterate him quickly.