Well, remember: While they do have the 4 Evil Spirits and the 5 Horrors, there are also 5 Good Spirits and 5 Elephants. And you, as the Player (who for a name i'm thinking should be Aqua) will have the chance to possibly redeem the Dark Spirit (who for a name, I'm thinking Yamuerta). Don't feel bad for them. Just realize that you, as either Aqua or (for the girl, I think Reggie. It's punny.) will help the Ioa region deal with both the pervading darkness (which is behind Team Tomorrow, Team Eclipse and Team Lightning) and the darkness that already dwells in man's heart (Team Ragnarok).
I think we need a pure Poison, a pure Fire (one gains Dark the other Ground ATM). We need more Normals. And I got a Grass type in the making. Electric Porcupine will be mixed in (though I think it should evolve into the Steel, and start as pure Electric). As for Toxic Ferret... Wait... Minxous! That's a good name for a poison ferret!
Don't expect Dry Ice. I'm not the best programmer. Scald's also out, sadly, as I'm working off Gen III. Blizzard, Ice Beam, Flamethrower, Flame Wheel, all easily accessable. But I need a theme. Hm... And no Eevees in this game, as well as no Dittos. I want us to have some unique Mons here. Instead of Eevee, you have Alloi and Yuryu.
But I will figure out... something. Eventually. Darn it... I gotta figure this one out...
I like the urchin. I like that a lot.
Electric guy: Possibly. Sounds like a Will O' The Wisp. Might be related to the Ghost Horror from the physical description.
Ground/Poison: We already have one of thems... but I can see a pure Poison that learns Dig being interesting. Make it a fusion of a Zerg and a Bullet Ant maybe?
Psychic/Steel: Sounds a little too similar to Genesect thematically... and they've done aliens a lot already (Deoxys and Clefairy spring to mind). But I'll consider it.
Speedy Bug: Maybe... A mantis theme I can get behind.
Pure Dark Mind Controllery Guy: Oooh... dark and sinister. It sounds like it'd be related to the Dark Spirit somehow, as that's kind of their schtick.
As for the snorlax thing: Maybe... maybe. I was thinking Bugrand should be that myself.