Terry is a powerhouse, a mountain-mover, a tower of strength that was taken down only by Lord Wolfgang Krauser and Kyo. Krauser is a no-show, and Kyo is a fiery young upstart with the Kusanagi flame, the defender and keeper of this flame, while Iori is Kyo's fiercest competition, I still think Iori owns Kyo's ass, and Kyo owns Terry.
K' is my pick for the king of fighters hero and champion. He has style, like Iori, substance and flare, like Kyo, and wickedly devastating power moves like Terry. K' is perfect, as any hero should be. He has a sense of fashion, he has got style, charisma, speed, agility, strength, Terry just doesn't have what it takes to roll with K', and although Terry might kick Kyo's ass all over the place, he would get blasted by K'.
My advice? My dream? Put K', Kyo, and Iori with Mai and have them be some new kind fof team, the all-star dream fighting team full of noble warriors and skillful fighters whose only purpose is to crush the plans of the maniacal forces behind KOF.