It has been argued that the Arcade Card doesn't actually have enough RAM to store all the animation frames of two combatants and their backgrounds, and that the special HuCard was the only way to truly do SF2 right on the PCE. This means that SF2 Turbo would need an even larger HuCard and would also not be practicable on the Arcade Card.
That makes zero sense to me for two main reasons:
1) The Neo games have WAY more assets than SFII does. SFII was mind blowing in 1991, but things moved on quickly and after a few years of Capcom using the exact same sprites/animation/resolution/color depth/hardware, etc they were quickly surpassed in the art department by SNK. Across five different SFII releases Ryu has the following changes: different Hadouken animation, lunging punch thing (forward->fierce), air tastumaki kick (no new animation), getting up animation, Shinku Hadouken (recolored frames of existing animation). I think that's it. Any system that can handle SFII can handle SSFIIX. The main reason to go from CPS1 to CPS2, really, was copyright protection.
2) The Arcade Card wasn't even out yet when SFII came out. I think the AC was almost two years after SFII'.
The main reason, as it seemed to me at the time, for SFII' to be made on a HuCard instead of a
Super CD was that the Super CD card was too memory poor. Supposedly Capcom was toying with a hybrid CD/Hu release like KOF '95, but I think the main reason they scrapped that is they wanted as many PCE people to be able to play it as possible. CDROM2 people were only part of PCE ownership. The same logic applies to Bomberman releases (which could have easily been done on SuperCD). Its also possible they didn't want load times. They were trying (and in the end succeeded) to make a version comparable with the SFC version of SFII and the upcoming SFC and MD ports of SFII'Turbo. A CD version on PCE would have been the only version that loaded.
Of course, none of that applies to an Arcade Card version except for HuCards having a larger audience, which I'm pretty sure is the reason they made it a HuCard instead of a SuperCD or hybrid HuCard/SuperCD. By the time the AC came out, Capcom (and pretty much everyone else) was long gone from PCE forever.