As Ron and deeg and blue and others have noted, still seems remotely long shot that Cubs would get him. If there were 7 West Coast teams, don't imagine the Cubs would still be on the list!
Still, I think it's kinda cool that the Cubs are one of the two "other" teams. Seems like for most of our memory as Cub fans, how often would the Cubs situation or management be able to stack even that favorably? Speaks well for the capability/persuasiveness of management and the evident competitiveness of the Cubs.
Any given the uncertainties of what Otani is looking for, who knows. Cubs have set a major priority on "character", and Otani's choices suggest that he may have a high value for values other than $$ and glamor. (For Jeff's sake, I have to mention values other than wine, women, and song!
Cubs have also seemed to really profess, and demonstrate, a priority on caring and protecting the individual guys and their families, on treating people well. Chicago may not exactly qualify as "small market" (and who knows whether that's really much of a priority for Otani anyway). But it may be that "small market" is less about actual population than it is code for a situation where a man is respected and appreciated for his own individual personality, rather than as a commodity. Cubs might perhaps come across very favorably as a place where a guy can be himself, and that might be very appealing.