You`re glossing over reality, I don`t think most of you have ever played 64 with items, at least seriously.
What I mean is take the Stranded M2K vid:
A beam sword appears, (or a tornado, like did happen) on the ledge with M2K. There is the reaction to it, this is the first high-level item game, reacting/retrieving/being aware of offscreen item drops. This can provide an opportunity for approach, and the interesting (and high level) and unique moment of attack, focused not by each opponent approaching the other (dynamic) but by both opponents reacting to a static goal. I.E. You know where your opponent is going, and can either bait or beat him there. Again, this is an awesome moment of combat that needs severe justification (stronger than "It`s RANDOM: UNFAIR") to be removed.
Secondly, M2K must actually go get the thing, even if it is RIGHT ON TOP OF HIM. This moment (few frames for movement, one to grab) is certainly exploitable, in fact, is the very skill-based interaction I spoke of above (reading your opponent, judging timing, distance).
Thirdly, while you admit to this level of depth (as quite a few players do, but are too terrified of "the community" to speak up), you are wrong in the calling it luck. Even if an item spawning RIGHT ON YOU is considered too much of an advantage, the game itself limits this to <1% IMO* by having varied item drop heights and locations. Thank you for seeming to have an objective opinion on this, the level of debate on something as important the RULES should always be defendable.
*In my hours of experience with items, I would honestly say it`s about 1/100, maybe even less, that drop right on or next to (within roll distance) one character or the other. Suffice to say it is very rare, and 99.9% of these interactions are determined on skill, not luck.