It's weird that Morshu isn't taken seriously in Smash discussion, specifically on the "Nintendo All-Stars" side. The CD-i games (and the weird 90s outsourced/multimedia stuff in general) are about as big - if not bigger - a part of not just Nintendo's history, but also their fandom, as Nintendo's work with Rare and Square. Fleeting, but left a major impact, expressed by fans through fan content. I totally get not liking the idea on its individual merits (limited moveset potential without creative liberties, not liking the character design, general COGH vs. NAS divide, overlap with characters like Anna), but brushing him aside as "just a meme" is equally as dumb as it is for Waluigi.
I guess it's more a symptom of Smash fandom's wider issue of anti-bad-game bias than anything Morshu-specific, but still.