personally i think iori also takes more skill to use effectivelly. at least it looks that way to me.
Be that as it may, we're still debating under equal hands, who's stronger or are they just that close. Perhaps Shen's more inviting for new comers, but doesn't exactly mean he's a better character overall.
Maybe I'll settle that Shen's better without meter but Iori is better with meter. I think just the fact that he has several invincible Ex moves which is useful on wake up plus his NM is better Shen's (slightly, but noticeable).
Iori has 3 Ex moves with invincibility plus an EX super that can be used on wake up. Only 1 of them is safe on block which is qcb+AC, so we're basically talking about that alone. Both Shen and Iori can use EX command grab on wake up if they're close enough. Shen can do level1 or both level2 supers, just unsafe on block. So he does have options, just not a safe one. His dp+P is only good if using the EX version as anti air, and for Shen he would have to use level2 super to do the same, so another small plus for Iori.
I always thought Yagami and Shen were pretty much the same in strength with some minor differences. I know Yagami has better anti-air options too. Obviously, he has one from dp+P but a cr.C and neutral hop D works as well. Hop D can also be used for zoning due to its horizontal hitbox and is very meaty when it actually hits. It's still really good after all these years.
Another difference is the issue against projectile users. Yagami might have a bit of a problem without meter but Shen can easily negate projectiles with his qcb+C. On the plus side, Yagami also has more mixup options with his standing close B, df+C and jump b+B. Also, he can backdash faster than Shen.
I also like a few quirks with their command throws. Shen is comboable after f+B but only EX allows you to combo afterwards. Yagami allows you to juggle at anytime his throw connects but in order for it to be used in a combo, you either have to use an EX version or (hyper)drive cancel at a really close range.
SNKp's KOF blog also said something about Shen if I recall. He has to be on the offensive side. Defending with him is a little more difficult when pressured due to his lack of anti-airs. People may have gotten around that though but I suppose it's still true. Yagami can be used offensively or defensively.
Mid game air to air Shen has Iori beat with j.CD, s.C, and d.C.
As with what Aenthin said, Iori has a harder time dealing with projectiles, as Shen can slap them away or EX super. Iori can EX super, but can only be done at mid range when the fireball is right next him.
As I said before with df+C it's not good by itself for mix ups, most of the time he'll get hit out of it. If the opponent blocks it, it's also unsafe making it a really risky move. Because of this, the mix up game with overhead is near non-existent against experienced players. Shen also has an overhead, but unsafe as well on block and cannot HD from.
Backdash is also a minor plus for Iori, but he's an offense-based character in this one. Back when he had flames, it was more useful because he had fireball and a better dp.
Also one thing to note is Shen has better mid screen combo juggles and HD. Iori basically is more efficient with a cornered opponent.
On a final note, a huge plus about Shen is his command throw. It works as 1 frame grab EX or not. Iori you'll have to be very careful to use non EX version. This is actually a big factor since it gives a better mix up game without meter. This is probably the main reason Iori needs meter so that he can have the option to dash grab, empty jump grab, or wake up grab. Not only does he need meter to do this, but can only do decent damage if he is near the corner or spend even more meter (which means you won't have much or any left for doing this again).
Also since Iori is an offense base character, most of the time he shouldn't be in the corner and if he is in the corner a lot, it's probably a bad match up or the opponent is just playing better. I can actually make a long list of which character has better moves if needed. But to me overall summary of this issue is:
- Iori and Shen have great offense
- Midscreen zoning games Iori is weaker, but Shen can handle it
- Defense Iori is slightly better (with meter only)
Edit: On a side note, I doubt anyone plays both Shen and Iori as their main team, but if you do, it's pretty obvious that Shen is much better without meter and about the same if both have meter. Grass will always seem greener on the other side so need to play both to feel the difference.