It's pretty much confirmed everyone is completely psyched for the gentleman boxer Dudley to be playable in Capcom's upcoming sequel to Street Fighter IV, so why not give the fans they want and have a developer's insight on the character?
Here's a snippet of the article. Hit the source for the whole interview.
"[Dudley's] playstyle really requires a psychological warfare, so in that sense he may be suited better for tactical players. If you are the type who likes to do what you want to do and hit a good combo to decide it all, maybe he's not for you, but if you like to think "Well, in this situation he'll do this move" or "if I do this I can irritate him and bait out this move" - the type who really likes to read your opponent, then I believe Dudley is right up your alley. "
Source:
http://www.capcom-unity.com/s-kill/blog/2010/03/09/super_street_fighter_iv_dev_blog:_dudley!
As for who'd win-- Dudley versus Balrog? As Dudley's immortal words have said, "Gutter Trash."