Come to think of it a lot of the characters from the Orginal Street Fighter were quite disgusting.
Hey, those designs are from over 15 years ago. Times change.
Gill was designed as a showcase for CPS-3. He's possibly the first (only?) sprite that has a different right/left orientation. Other sprites are just reversed from left to right.
That doesn't take away from how ugly his design is, however.
You could say that Capcom was just moving on with the times and making scantily-clad characters for both sexes, but the most nubile SF3 character is a guy with a thong rammed up his ass. Two of them in 2nd Impact and Third Strike.
Makoto was originally concieved as Ryu's sister, but this changed and she became unrelated. So she screams, name a Japanese female game character that doesn't, sheesh.
I don't care what they say, she's clearly "inspired" by Akane Tendo from Ranma 1/2, just like how Yun and Yang (especially Yang) are taken from two Gundam Wing characters.