Oh my.
Competitive play is not the point of SSB. The point of SSB is fun and accessibility; it is, at its core, a party game, or something very much like a party game. Hence simple, universal inputs. Hence 4-player — ah, right — 8-player multiplayer. Hence relatively slow gameplay that feels more like a platformer than other fighting games. Hence a gloriously imbalanced stage selection. Hence the roster based on relevance and not how well each character is needed or would actually fare in a fighting game.
Shall I continue?
The conceit on these forums is astounding. If Sakurai says Super Smash Bros is not intended for competitive play, then he's tautologically correct:
he makes the games; they are his work. Sakurai (quite obviously) did not make SSB for competitive players, and he's saying that he will continue to do so. If Super Smash Bros ends up as an excellent competitive fighter, then that's fantastic, but that is not the highest thing on Sakurai's priority list.
I respect him for taking SSB in this direction; the world has plenty of competitive fighting games, and a fun, well-made game that anyone can play (my little sister can play smash effectively at age ten) is a wonderful and much-needed thing. Why should that make anyone angry?
I'm amazed this comes as a surprise to anyone, especially the residents of SmashBoards. Apparently, Sakurai's remarks were needed, since somehow so few of us were able to figure out what Super Smash Bros is actually about. If you don't like this, then you probably should take his advice and find a new game; my personal favorite is Project M.
Edit: Many seem to think that we're a huge part of Sakurai's market. This is more conceit: we're not. Strictly competitive players are quite the minority in the SSB audience, and I highly doubt that Sakurai would have politely offered us the door if we were.
TL;DR: Smash is a party game. Sakurai's right. Go play PM.