So the common theory is that the Monarch and Rusty are half-brothers. My theory, after watching Faking Miracles, is that the Blue Morpho is their biological father and not Jonas
While it's rare twins can have two different biological fathers, its called Superfecundatio. JJ was the true biological son of Jonas while Rusty was the biological son of the Blue Morpho.
I also believe that the reason why Henry killinger didn't put the Monarch on the council was because he plans on having the Monarch become a hero and follow in his father's footsteps and become the new Blue Morpho.
My guess is the reason for that is convenience. Blue Morpho is obviously this universe's Green Hornet (in spite of his lair being very Adam West Batcave-esque), and as such needed an Asian sidekick. Since Kano is pretty much the only Asian person on the show on the hero side (I think it's just him and Dr. Z overall, right?), it probably was easier to use him than create someone from scratch.
On the plus side, it adds the backstory of how Kano came to join Team Venture; he could have moved over after the Blue Morpho died (or, if you like the prevailing internet theory, was turned into Vendata). Or given that these characters seemed to be as much the product of the then-occurring media (comics, TV shows, etc.) as the subject, it could be that Blue Morpho never got quite enough of a following (the "six issues, not Kirby's best work" bit in the most recent episode was pretty hilarious, or at least it was to me), and so Kano was shuffled over to Team Venture. In those early days of comics, if characters (or elements of characters) didn't catch on in one form, they were often repackaged and then reintroduced in other universes. It could be that the Ventureverse went (as comics did) from a lone-wolf/dynamic duo age to the age of superhero teams (and particularly later on wanted to promote some ethnic diversity), and that Kano was able to check a diversity box while Blue Morpho was not.
I guess what's surprising to me about the pairing is that Kano can breathe fire, can he not? That would make him a superhuman sidekick to a Batman-like my-superpower-is-wealth regular human, which I do think is something fairly rare. Though maybe he gained such a power while part of Team Venture; Given Jonas' willingness to experiment on his teammates (RIP Dr. Entmann), it could be that he ran with the "Kano" name (as in vol-Kano) and tweaked him a bit. The guy had mastered cloning, after all; not a stretch he could have done some gene alteration work.
My guess is the reason for that is convenience. Blue Morpho is obviously this universe's Green Hornet (in spite of his lair being very Adam West Batcave-esque), and as such needed an Asian sidekick. Since Kano is pretty much the only Asian person on the show on the hero side (I think it's just him and Dr. Z overall, right?), it probably was easier to use him than create someone from scratch.
Oh please, you don't think they could whip up another "asian person"? They didn't have any trouble making Mike Sorayama. You're reading waaaay too much into it.
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And they killed off Soroyama in the episode they introduced him. Yes, they could have introduced someone new, but I don't see why they would: using Kano is a nice way of tying Blue Morpho into the half-real-half-fake world that the Venture family lives in. Why introduce someone (and then have to explain why we haven't seen that person on the show before while most of these other old heroes and villains are still lurking around) when there's someone tailor-made for the part that exists already?
As to "reading too much into it," I'm assuming you're referring to the idle speculation I was building on top of the choice and not the choice itself. I admit that I do an inordinate amount of Venture-verse theorycrafting; I've had plenty of time to practice it in the years between seasons. I will say that I think Doc and Jackson do concern themselves with minor details like this; they have a broad base of knowledge (in particular, they revealed themselves to at least have some familiarity with comic books in the Season 4 premiere) and they'll often throw little references in here and there. I just have no particular insight, nor do I make any claim to, into what tidbits are intended to be breadcrumbs and what aren't. Still, what fun is it to only discuss known facts when it comes to TV shows? I don't think the show's creators would begrudge me thinking them more clever than they actually are.