I posted my DK moon post in a bit of a snarky tone, but it really does baffle me how internet people cannot comprehend the concept of cartoon timelines. No, there are not 2 moons on Mario's version of Earth, you are just looking at two distinct, independently created stories using the same characters that were not designed with one another in mind. This is the perfect of example of why a franchise like Mario following a canon would be bad - it's fun to run on the moon, and it's fun to punch out the moon, you shouldn't be stopped from doing the prior just because it would contradict the scale established by the latter. Suggesting the moon DK punched out is a "dwarf moon" just drains the fun and silliness of the original scene by not making it "the The Moon", and you could also argue that that negatively effects Odyssey's depiction of the moon too.
Guess what I'm trying to say then is that, I think the main reason they don't work in platfighters is that they've never been designed with competitive play in mind, whereas for tradfighters it is downright vital to competitive play.