1. Can you provide the source that demonstrates that Ms. Pac-Man would be allowed in the capacity she is in but nothing else? If so this is just your speculation on what the legal dispute means.
2. If Sakurai prioritized the most highly discussed characters only, the roster would be a lot different.
3. I mean, you can make the argument just as well to say that Pit is a bad choice for Smash. He's just a niche character from a couple middling successes.
4. Is King K. Rool more popular overall? Or just in the Smash scene?
5. It's very weak, because it's the same argument people have made for years to criticize certain suggestions for years. For people like me who enjoy seeing stranger characters or characters who push boundaries of what people can expect for Smash, it makes discussion tedious and pointless when people are saying "Smash doesn't [X]" without explaining the [Y] of the matter. Smash doesn't feature transforming characters in 64, all Smash characters in 64 came out relatively recently, all Smash characters in Melee were Nintendo, all Smash characters in Brawl lacked gender options, all third-party companies in 4 had only one character, all third-party characters in 4's DLC were one per series, etc. So when you're admitting that the reason for Chun-Li being unlikely is weak, it just seems like you're scraping the bottom of the barrel to make it seem like there are fewer options than there are.
6. You need to be consistent. If Square Enix regarding Nine and Ten equally to the other Heroes is not an important factor, how they market DQ protagonists is not either. And I'm in agreement that they don't market the character well, but that sounds like a sexism issue, so it's not a great argument. If Sakurai pushed for Heroine, even a bit, that'd be a thing, but he doesn't seem to have.
7. Some following should be adequate. Like, Krystal doesn't need to be the most likely or best choice, she just needs to be a possible choice, and she is.
8. The amount of time a character is in a game in cutscenes is irrelevant to the substance of the cutscenes. She brews potions, she casts spells, she transforms people and objects, she can summon objects, she can grow and shrink things, she has a flying broom, she can summon familiars (she literally has a devil as a companion), she can grow giant carnivorous plants, she has a magic wand that can transform into different objects such as a parasol, shoot lightning, use mandrake roots, and has a wand. This, I might add, is from the video you posted. I don't know how you think Ashley has no moveset potential when the various cutscenes across the games show TONS of stuff. I mean, Ice Climbers made an entire moveset out of literally one move, so I don't know exactly why you'd think Ashley would pose any trouble.
9. I think you overestimate how much Sakurai cares about the fanbase. If he cared that much, K. Rool and Ridley would have been in years ago. Also, the game sold very well on both Wii U and Switch and has a new entry on the horizon, it's more than eligible for a second rep.
10. Not adequate reasons.
11. What you said is entirely personal opinion, and in a discussion that IIRC is about reasons why they are unlikely, it's not really useful. The reason why we could or should have two Midnas? Because it'd be cool. Zelda's a great character, and having a variant on Zelda would be great, especially one like Midna. It'd also be interesting and unexpected, and be, I think, a better Echo choice than anything else for Zelda (the next best would be Hilda, but I feel she would just be Daisy levels of Echo).
It becomes a problem when the "Debunking" revolves around speculating reasons why a character can or cannot be in. And honestly, what changed between Smash U to give us "definitive knowledge" of how Sakurai operates? What you describe as incredibly detailed knowledge is just your best guess as to Sakurai's motives. That Sakurai has not said that a third-party franchise cannot or should not have two unique characters means that the argument has no more basis than the notion in Smash 4 that third-party companies are only allowed one character each.
Smash isn't made by a machine, despite what Sakurai's aging may suggest. Sakurai has the ability to seek out POC characters, it's just not something he is interested in doing. It doesn't invalidate the notion of Smash being a celebration of gaming's past or present, because the list of characters who appear in Smash is not also the list of the most significant characters in gaming, even in terms of franchises. Like, Lyn for instance is one of the most popular characters in Fire Emblem, more popular than she was in her debut game. Why is she absent?
