So, from what I am understanding, is that we go from having Angel people, a fantasy race based on righteousness and justice which for some reason you guys decided to keep. But now they are weird winged people that were refugees?
Kayle and Morgana's old lore (the Angels from the alternate dimension/planet/wherever) was, quite frankly, one of the longest-standing carry-overs from the Great Retcon. Kayle and Morgana (and Malphite, to a similar-such extent) had the same lore they had back when the Journal of Justice, Institute of War, and the League of Legends were a thing.
In the new Runeterra, Kayle and Morgana had no place to exist. They, in point of fact, did not exist in the universe, and only existed as the Champions in the game.
That said, from what little I've seen of Kayle and Morgana's new lore (there's little to it right now that I know of, but if someone has anything of greater depth, feel free to show it to me) is that they're Targonians, blessed or descended by the Aspect of Justice. Kayle chose to become a divine exemplar, striving ever-higher for moral perfection, while Morgana took justice in her own terms; justice for the people on the ground, the downtrodden who couldn't benefit from those lofty ideals of perfection her sister had.
Aside from the lore, which I would of begrudgingly accepted. You trashed Morgana's sexy, beautiful design and traded it for something that looks like as if Xayah and Evelyn had a love child. Traded out Kayle's strong, masculine though feminine design and threw her into a body suit.
Firstly, this stuff is subjective, and should generally be taken with a grain of salt.
Second, Morgana's old design was largely just a woman's torso, tattered wings, and a wide bell dress from the waist down. IMO, the new, Morrigan-esque design she has is far more beautiful and imposing than what she had before - and I have to applaud Riot for the creativity they took in incorporating Morgana's wings into sort of a fashionable collarpiece for her.
As for Kayle, she's always had a bodysuit. The only difference was that her waist was more heavily covered, with pronounced tassets and a belt buckle. That people keep looking at 25% of her full appearance and making assumptions based on that alone is pretty disappointing, but, regardless, I've seen it said that Riot has taken note at the dissatisfaction and are passing word along to see if some tweaks can be made.
Even still, she has a strong design, keeping both masculine and feminine aspects. The only real issues are her silhouette and the absence of that belt piece.
The compelling sisters are no longer organically yin and yang but rather given a needlessly complicated lore.
We haven't seen their full bios or lore pieces yet, have we? We just know that they're related to Targon, the Aspect of Justice, and both have a stake in Demacia, especially with the new Mage Uprising. They both have the same thematic they used to have - difference of ideals, one Angel striving for higher virtues, and the other sympathetic to those on the ground - they are still yin-and-yang-like.
Now Morgana lives in 'the shadows of Demacia'? What does that even mean?
Exactly what it reads as. She hides in the dark corners of Demacia. Does such a statement need further description?
So she is no longer a baker owner in Noxas, with so much room for lore and personality growth...
Again, Kayle and Morgana's lore prior to their VGU is not canon. And it wouldn't make much sense for a fallen angel to run a bakery in Noxus - so counting Sinful Succulence Morgana as canon is generally not an option.
And what personality growth does she lack by not being tied to a bakery from the old lore? Is there not ample opportunity to explore her idea of justice, to see how she views Demacia, the mage conflict, and the world in general?
Don't discount the possibilities for lore we have yet to see.
...but they are both basically flat characters now just like a lot of their newer characters.
Any character can appear flat if you only look at the surface level. That you aren't interested enough to look does not mean the characters are flat.
