It kind of seems like the Teddy thing is intentionally "trolling" ActRaiser fans, because only people who have played the game would know who he is.
I'd be surprised if most ActRaiser fans really cared about him that much, either, though. I don't see people claiming that they cried when they heard Teddy was killed and building shrines to him the way they do with Aeris.

"No one can withstand the power of KAIN"