I know it was a long shot for him to be in it, but a lot of people were hoping.
Well, consider those hopes dashed.
THQ's All-Stars "fantasy warfare" facebook application features a fight between Sgt Slaughter and Jack Swagger and the description of the fight says this:
"Watch Sgt. Slaughter vs Jack Swagger in the ultimate Stars and Stripes showdown!"
It can't be the "ultimate stars and stripes showdown" without Olympic Gold Medalist Kurt Angle, so, ii'm pretty sure this is proof that Kurt Angle is absoutely not in this game, or that would have acknowledged him in some way.
But hey, Swagger is like a severely broke, poor-man's Kurt Angle anyway. So at least it'll be possible to make in in their CAW mode, i'm sure.