Ye speak the words of truth fine person.
I'll also say there's a multitude of reasons why he can't even work as a fighter, such as the main gimmick of Minecraft: Building, crafting materials, destroying said buildings and materials is a bit too complex to be in a moveset for Smash Bros. a reason why Heihatchi from Tekken was cut from Smash 4, too complex for smash bros for a moveset. Otherwise it'd just be like if you combined Link and Villager into one character and uh... I think we have enough Link semi-clones and Villager only needs the one thank you very much. (Plus y'know, Steve has no personality while other player characters in the game such as Miis, Villager, Robin, Corrin, all have distinct personalities and at least express a multitude of emotion and personality through body movements and facial expressions... something Steve can't do due to the nature of Minecraft, how weird it'd be to have his limbs move that way and it's skins).
Though if you ask me he's a perfect fit for an assist trophy next game or as a DLC one like Sheriff was in Smash 4 since as an assist trophy at least he could actually do his game justice by actually doing what made it unique in the first place. Probably weird to have a desire for a character to be an assist trophy and think of it in a positive light but that's just my opinion.