In short, I think it’d be cool if you could go through an Arcade Mode that’s a reference to Killer Instinct Classic or Killer Instinct 2 Classic. The ladder would consist of the cast of that game, all wearing Retro costumes, while their normal stage themes are replaced with their themes from that game. I know that the final battles wouldn’t work out unless they added Eyedol and Gargos in Season 3, but I think it’d be a neat bonus mode.
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I think I suggested this way back on the Season 2 forums, but it was predicated on the idea that we’d get Remastered Retro Stages in addition to the rest of Season 3. Obviously the stages thing is currently a no go. 
Regardless, I think it’d be pretty cool. Remastered versions of the old FMV’s rendered in the modern engine, classic music, classic bosses, all with the new gameplay and graphical style. I think it’d be pretty rad.
Cool idea, but we need some fixed S1 retros first.
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THIS!
Again, retro survival option still missing. Also they shoiuld use character renders only through the background of the loading screens to speed up the loading time. Just like MKX loading screen.