Basically Bruce Lee's family have changed their minds and now find characters who comedically parody Bruce Lee to be offensive, and it sounds like Capcom has decided to honor their wishes and stop putting Fei Long into games. 

This could potentially affect other fighting series like Tekken, Soul Calibur, Virtua Fighter, Mortal Kombat, and Dead or Alive as well, whose Marshal Law, Maxi, Jacky Bryant, Liu Kang, and Jann Lee characters are also based on Bruce Lee to varying degrees.

‐‐---------------------------------------------------------------

Edit: The composer has now stated that his comments on the situation were taken out of context, and the Lee family has released a statement saying that they have made no such request.

It's a sad day for Bruce Lee fans, but Lee family has the final say.

Well, technically they don't. Parody is protected under US law and most other countries as well. The Lee family were soured on Bruce Lee parodies after the way he was portrayed in Once Upon a Time in Hollywood, but legally, there is little that the Lee family can do, I think China was the only country that listened to the Lee family's demands to block the release of Once Upon A Time In Hollywood. Capcom is just deciding to play nice and respect their wishes. I doubt characters based on Bruce Lee will end up being removed from all of the fighting game series since the Lee family has no legal leg to stand on, though it is possible that each of the fighting developers will choose to respect their wishes like Capcom.

He's a composer so he doesn't make these decisions. He's making an opinion and people are taking this as a fact. Not like we have heard Tekken won't have Marshall Law in future games.

He says he personally has taken part in discussions at Capcom about the future of the character and says he has sources within Capcom closer to the situation than him who told him that Fei Long won't appear in future games. It's obviously not final until Capcom releases an official statement, but it does seems very likely that Fei Long is toast.

Eh some sources of this story are he said my friend said. Eh, skeptical. Besides SF has sucked post III anyway.

He was my favorite character in Street Fighter II.

I wish this story hadn't spread. The composer has said he was taken out of context.

Objection, hearsay. 

Well, the best solution of course is to replace him with fat Steven Seagal.