First of all, Gouki did use KKZ to sink the island. Secondly, despite what some sources say, he isn't completely drained of power after using it, he wasn't Shin when he did it, and he just fought Ryu to a stalemate, logic tells you that. Also, SF will win this, mostly due to the weakness of a lot of the SC cast. The reason why the weaker characters like Xiangua, Kilik, and Maxi get victories over the powerhouses like Nightmare is because of plot devices, they are triple teaming him, and two of them have plot device weapons that are effective against NM and Soul Edge.