Yeah, we know what it means. And Steve is definitely a gaming icon. He's a fully named character, and recognize due to his design. He's everywhere. And people buy the character's merchandise because they know who he is. He's one of the most recognizable characters even if you don't know the name. Pretty comparable to Link, actually. Most know his name, some think he's named Zelda, but pretty much everybody recognizes his design. Made even better by them both being designed to be avatars at first(Link got defined in a different way, but was pretty blank at first. Zelda II really started to get there). Steve's key difference is that he didn't get named till later, and by the fans alone(which started the Steve? designation for a while), but that changed little since the origins didn't really matter anyway. In the end, both are huge gaming icons that pretty much everybody knows who they are. And the reality is, a lot of characters are not on that level. And as much as I like Banjo, I won't pretend he's that mainstream. He absolutely is an amazing character, and definitely a great option for Smash. But if we're choosing the biggest icons, Steve wins by a mile, really. And since it only furthers help Banjo's chances to get in at a later point, there's really no downside to having the bigger icon in before the lesser icon. It cannot hurt whatsoever with sales or making the game more popular.
Sometimes you might as well give up. No point in it when people refuse to accept hard truths about a character's iconic nature.
Plus, Link started as an avatar right away. He evolved to being different in the second game, but his whole point was an interchangeable character. He actually is still an avatar-like design with constantly changing clothes and only a partial default look(even BOTW took the default look away). Him changing shape is actually a notable character feature.
Because it will. Banjo is a lesser known character. He's owned by Microsoft. Once Microsoft gets content in Smash, it's far easier to get content in that wasn't already in. This has happened quite often with more than one 3rd party company, with Bamco being the sole exception when it came to playable characters. It'll never hurt to have someone else in first if it only leads to other characters getting in. Banjo first has to be in the game, not even playable, first. If he doesn't become playable right away, he only has anywhere to go but up unless Microsoft no longer wants content in Smash. Which is pretty doubtful. Considering the only company to forego Smash one time was Konami... yet got tons more content in Ultimate, there's far more chances Banjo would be playable in a later game than not(if he doesn't become playable in Ultimate, regardless of whether he appears in the game with the other DLC as a Spirit/Mii Costume/AT or isn't in at all. Though really, I honestly expect Steve, Banjo, and Master Chief to appear in some way as is if Microsoft gets content. Regardless of which one is playable, the others are too big of icons to ignore).
There was no Golden Sun item whatsoever(it's unrelated and just admittedly looks similar). The Rathalos tweet has nothing to do with GS, but is just a nod to JRPG design in general. It literally had JRPG protagonists fighting a dragon. At best it's kind of a Camelot style, but otherwise, had zip to do with GS either way. People took it way out of context. The other two are valid points, but the first two never meant anything.
I do agree he should've been shown off earlier, but it's possible his AT was done later. Possibly Shadow's was done later too(maybe they did try to make him playable but it didn't pan out. Sega said no, and he kept his AT status, but was finished up last minute. Who knows).