Um, no, he wasn't that high in CvS2. He was still a solid character, but he was not better than Geese, Hibiki, Cammy, Kyo, Yun Rolento (Edit:stupid typo), Vega/Claw, or arguably Chun. Upper mid tier, maybe pushing into lower high tier thanks to RC rekkas, but that's it.
I can't really comment on XI much since I'm not as familiar with it, but from what I've seen, people put him at best somewhere in midtier in that game.
Anyway, yeah, his moveset is well-rounded. Then again, so are Ryo's and Terry's. Yet, somehow, those two were considered among the worst characters in XIII v1.1. Just because Iori has a very similar moveset to his 98 version doesn't mean he's automatically the top character. Like SAB-CA said, there's no point in calling characters OP/broken/whatever until there's some concrete information on their final versions, which includes stuff like frame data (precise or eyeballed) and hit boxes.