Cloud's recovery isn't free at all for most of the cast; I believe
Shaya
outlined in an earlier post how many characters could feasibly get consistent edgeguards on Cloud, and the list turned out to be quite short. Recovery is about more than the distance of your up-b and whether or not it autosnaps. Cloud's very good at simply drifting back to the stage, both because his n-air covers so much space so quickly and because his air speed is good (especially in Limit), and this is a vital part of recovery. Most of the time he can just recover without even
using his up-b, and if he has to use it to avoid getting tilted or something he can be close enough to the ledge to invoke his same-level autosnap.
With his good double jump and weight he can make it difficult to force him to recover low, so he'll be Climhazzarding to the ledge from above it, which is very difficult to punish because the hitbox for Climhazzard is so big/good. You saw Nairo ledge trump m2k in this situation to get an edgeguard at Shots Fired 2, but this isn't reliable once it's a known option; that worked because of the element of surprise (m2k could have buffered a getup option).
Cloud has a solid recovery, and in the average smash match (if you aren't predictable/silly with your recovery choices) he won't be getting gimped even once. It may happen once in a
set, or maybe a little more depending on the matchup, but it's not quite the same as Little Mac's situation.
On the other hand, he's not weakness-free. Interestingly enough,
@Radical Larry got it right when he said that Cloud's biggest weakness is to shields. (for anyone not noticing, Larry's posts have been a lot better lately so if you're just ignoring him like always now might be a good time to give him the time of day)
I've made the argument before that to some extent,
everyone is weak to shield, but Cloud in particular has fewer options for conditioning an opponent not to shield than most, especially since he lacks true throw followups with the exception of Limit charge. If you look at most of his moveset, he commits pretty hard in neutral, and a cautious, grounded, shield-heavy player can make him seem pretty bad in that state. Although good as reactionary options, Cloud's n-air, d-tilt, f-tilt, and up-tilt are not safe at all against block, and f-air is slow enough that you can force Cloud into having to use n-air instead in most situations. His jab transitions (and thus jab mixups) are also just slow enough to be meh against block, although iirc jab2 is pretty safe if perfectly spaced/timed.
d-air, as good as it is, is actually super punishable even if you use the autocancels; it's just that you can't punish it at the end of the animation like you can with most moves. It lingers for a long time so the way to punish d-air is to
get out of the way and hit Cloud while he's still in the d-air animation. It's like
Trifroze
(and earlier
@san. ) said. You punish d-air with a pivot grab or ranged aerial like ZSS b-air.
The only safe/applicable move that Cloud has in neutral against block is b-air, which is f11. f11 isn't always reactable but he gives you some obvious cues if he's about to b-air--for instance being turned away from you and also being in the air, so actually in practice the better players will be able to react to it and powershield it. Anticipation is a strong tool that sharpens reaction time.
Mobility can help mitigate the weakness to shield somewhat, but Cloud's aerial acceleration is also nothing impressive (0.06 is bottom half of the cast), and his airspeed is just 1.1, so he's not going to get a lot of crossups or weave/drift baits on you, and his tomahawk is just not scary.
This is all when he's not in Limit, though. When Cloud is in Limit he's amazing, even against shield! He's going to cross you up with a million moves, punish you from half the stage away with his great mobility (his airspeed and accel are both very good when he has access to Limit, and his gravity for fastfaller mixups), and just generally be a better character than you in most situations.
This is why for Cloud taking some damage or giving up positional advantage in order to charge Limit is often beneficial. Cloud is just a thoroughly mediocre character without Limit, even before taking into account his recovery. He can stuff approaches as long as you're not approaching with shield, like all ranged swordsmen, but that doesn't make him top tier. But in Limit, he's not just top tier but maybe a tier even above
that.
Because Limit Cloud is so good and nonLimit Cloud is so meh, Limit Cross Slash, the move that pushes Cloud "over the edge," is actually significantly weaker than it would otherwise be, because using it and whiffing puts Cloud in a really bad "I can't do much to you again for a while again unless I choose to get beat up" situation. So Cloud has to play pretty cautiously with LCS; he can't just throw it out there on a feel like a lot of Cloud players are relying on now, at least if he wants to be in Limit to deal properly with shields (which people need to utilize more against him). And in the meantime while he's hanging on to Limit he can be thrown offstage and be made to use Limit Climhazzard.
--incidentally, going for the toss offstage instead of perhaps a more directly lucrative combo throw in these situations may be something players start doing (actually it's something you can be doing to Cloud at all %s and even in non-Limit; even if his recovery is good, the *chance* of gimping him is often better than the guaranteed damage you'd get from doing a combo throw)--
Also, his disadvantage is rather mediocre, if you can get around d-air. n-air is f5 but it starts behind him so face off with Cloud, avoid d-air, punish his landing. You have to be precise and lab the timing for your character. Can't just go on your gut. Diddy should be able to punish d-air with a f-air or banana toss pretty consistently, for instance.
Cloud definitely has some limitations. He may be in fact be #1 in the game due to matchups, but I think he's manageable for the other top tiers, at the very least. This is in stark contrast to prepatch Sheik who had absolutely no weaknesses to speak of due to a 50:50 out of a f27-FAF standing grab (lol, "spotdodge" you say!?) that patched up her difficulty securing the stock.