Hmmm...
On Recognizability
I don't think any of us actually have any stats that prove whether Ryu or Chun Li are better known in the general public. An ACTUAL fact is that Chun-Li is more visually distinctive than Ryu, who is, as much as we love him, a pretty generic looking kung fu guy. Chun Li is more easily recognizable as Street Fighter.
On "It must be a Ryu Movie"
I disagree. I've seen the Ryu movie (Animated Movie) and I don't think that's the only way to go, and, imho, it's not only been done, and been done well, but it becomes very hard not to copy off of a dozen other modern martial arts movie... with Chun-Li you get some flexibility (ba-dum-ching) that gives you some potential a Ryu movie just wouldn't have. Part of the strength of the movie lies in the fact that there haven't been many (if any) well done heroine movies in recent memory.
On Kristen Kreuk
She's hot, no doubt. From Smallville, I don't see it. Perhaps she's grown in the years since I've seen her. I'd love to see her kick butt martial arts wise, but I agree that, as ridiculous as fans can be on the physical stats of actors playing their beloved characters (exact same height and hair color? No one realizes how silly that is when they say it?) -- Kristen needs some leg power, that Matrix workout type stuff to do some really incredible leg moves. If I don't see some uberkicks, it's not Chun-Li... it's just not.