Some people just enjoy different things and have a different idea of fun. I am more interested in the competitive aspects of the games and their is no video game experience that is more fun or exciting to me than playing an intense competitive game of Project M or Melee. Just because some people take the game more serious doesn't mean their goal isn't to have fun.
Now that you mention it, while I enjoy Project M (not for the mechanics, I like the costumes and new characters), I think it was a bad idea and should have never been done. Ironically, while the competitive community likes it, it could very well be doing more HARM to it than good.
For example, that female invitational player who smack talked the game like an ungrateful brat. Before going further, it's pretty obvious that Nintendo knows all about Project M. They have to, considering that the mod is too good for its own good that it ends up getting full blown media coverage. Fortunately, Nintendo pretends to not be aware of it, lest they have to shut it down to protect their IP. And for their part, the Project M team mentioned not adding Smash 4 characters in because it would look like they're trying to compete with Smash 4 and ruffle Nintendo's feathers. This relationship between the two has worked and kept peace.
The issue here is someone saying that Smash 4 is terrible and that they won't buy it and play Project M. Before the game is even released! This not only looks bad for Project M, which has been drawn into a conflict it never wanted to begin with, it's also bad for the competitive community, which Nintendo and Sakurai have been trying to appeal to since the game's announcement. They have gone out of their way to do things for the communtiy's benefit (the GCN controller adapter is painstakingly obvious of that), and what do they get?
Their olive branch gets snatched away, snapped in two, thrown on the ground, and stomped on repeatedly. The competitive community ignores all of the improvements, declares it "no hope", and says they'll go back to playing an illegal mod and not buy Smash 4. Ignoring that this is painting a bullseye on Project M and giving Nintendo a justifiable reason to go in for the kill, this sends the wrong message to Nintendo:
1. No matter what they do, the competitive community will never accept Smash 4 as a viable game.
2. The competitive community would rather play a game of their own creation over Smash.
Now, I mention several times that Nintendo could shut down Project M, but that's not the worst that could happen. The worst thing to happen is Nintendo using this reaction and Project M as an excuse to STOP TRYING to cater to the competitive community. If you think it's bad now, imagine years down the line when Nintendo refuses to listen to the competitive community regarding the next Smash.
"They'll never be satisfied with the changes made and refuse to buy it, so why bother? Besides, if they don't like it, they'll just make their own version of the game to enjoy..."