Of course Brawl is meant to be a party game. So was Melee and 64 and virtually every other multiplayer Nintendo game. I see the word "competitive" thrown around these forums quite a bit, in basically all of the wrong contexts. To say something like "Brawl is more competitive then Melee" or on the other hand "Melee is more competitive then Brawl" cannot be based upon anything to do with the game engine. Anything can be competitive. As Frames stated 14 pages ago: there are national tourneys for rock, paper, scissors.
Here is a nice definition of the word:
1. the act of competing; rivalry for supremacy, a prize
and the verb, "compete":
1. to strive to outdo another for acknowledgment, a prize, supremacy, profit, etc.
Again, the ability of these games to be competitive in nature has nothing to do with their engines but with the people who play them in competition with one another. So unless this forum has created a new defintion for the word (which it may have at some point) then saying things like "Melee is more competitive then Brawl" only means that there is less competition surrounding Brawl then there is Melee.
I for one believe that Melee>Brawl but wanted to illustrate a point here. Now perhaps Melee is more technical--
Def. 1 a: having special and usually practical knowledge especially of a mechanical or scientific subject b: marked by or characteristic of specialization
--this may certainly be the case but from the sheer number of Brawl tournaments currently being held, it cannot be considered to be more "competitive".