Just an FYI, since this is relevant right now: in multiple interviews, Sakurai has stated that balance is being done for FFA and 1v1. Online battles are taken into account, as well as feedback via the internet.
This is reflected in the general trend that perceived weak characters have been getting buffed across multiple patches and perceived strong characters have been getting nerfed.
Also,
LancerStaff
: Sheik has been nerfed in 3 of the last 4 balance patches. (1.0.4, 1.0.6, 1.1.0) She is getting slowly tuned down. She might still be on top, but it isn't the tip top anymore.
Additionally, you talk like what you're saying is fact. It's not. A 2013 interview explicitly states that FFA and 1v1 are both considered when balancing is done, and "The Act of Balancing," from Famitsu, vol 480, confirms that internet feedback is taken into consideration. That's also known as the competitive 1v1 crowd.
To take "FFA is considered along with everything else" and turn it into "this will never happen because it's also balanced for this thing" shows a lack of understanding on your part.