Even though I'm a huge fan of this game, I'm fine with it getting 3 stars instead of 4 or 5 because of all the gem and DLC nonsense. Just poorly put together and implemented.
Jeff's online problems, though...aside from the sound issues, I've had no problems, and haven't heard of anyone else I know of having any. I'm totally lost at this "I was blocking" thing. Maybe, like others said, Jeff wasn't aware some of the Tekken characters hit "mid" and it's not quite apparent until you play them a lot.
And honestly, I think the Tekken characters are the best part of the game. Projectiles aren't even a huge deal in SF anymore (Yun, Yang, Fei Long, Rufus prove that), so them not many isn't a hindrance, and learning how to play as them is just a lot of fun.
But, yeah, I completely understand where Jeff is coming from otherwise. It's a great game wrapped in a pretty bummer of a package.