You know what? I want to play a game: Add which characters you'd add in the roster as newcomers of all franchises currently in smash, third parties and total bias allowed
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Captain Toad, Fawful - it seems strange to exclude Toad in any form when he's playable quite often in main Mario games, and the Mario RPGs have surprisingly little content in Super Smash Bros.
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Dixie Kong, K. Rool - Dixie makes the most sense, what with her appearance in Tropical Freeze as well as being playable in two of the three Super NES games, while K. Rool has so much more material to work with compared to most characters in general, let alone ones in the Donkey Kong franchise.
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Kamek - outside of the baby versions of pre-existing characters, he seems like the most important recurring character.
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Midna, Ghirahim - both are quite popular (with Midna in particular being one of only four characters to get multiple versions of herself playable in Hyrule Warriors, and Ghirahim getting in that game over Demise), so I find it strange that they were relegated to assist trophy status when Zelda's characters in SSB have been basically unchanged since Melee.
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Genesect (and Squirtle and Ivysaur) - Squirtle and Ivysaur are both veterans with unique movesets, so that's pretty straightforward. I haven't been familiar with Pokemon since generation three, but as far as recent Pokemon go, Genesect really stands out, for being a bug-type Legendary, one of the very few man-made Pokemon, and having a natural weapon built in as well as the ability to transform.
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Ridley (Super Metroid version) - this is long overdue; it's ridiculous that Metroid is only represented by different versions of Samus after four games, Ridley is easily the most prominent character in the franchise outside of Samus herself, and when it comes to the reasons that were given for his exclusion, most of them seem hypocritical given that a lot of characters have the exact same issues.
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Bandanna Waddle Dee, Dark Matter - while I feel like Kirby is generally fine with the three characters that it has at the moment, Bandanna Waddle Dee has been playable surprisingly often (and seems like a pretty good choice for a character, given that Return to Dream Land alone gives most of a potential moveset), and Dark Matter seems to be the most commonly appearing villain. For Dark Matter, I figure either the swordsman form from Dream Land 2 or its true form from Dream Land 2 and Dream Land 3 could work.
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Krystal (and Wolf) - with Lucas coming back, there's no reason why Wolf shouldn't. For Krystal, it would be nice to have a Star Fox character whose moves weren't clearly inspired by Fox, and I'd like to see Star Fox Adventures get acknowledged.
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Giygas (Mother 1 version), Porky (Earthbound version) - I figure these two choices would connect the Mother series, with Giygas (in his Mother 1 form, since his Earthbound form wouldn't really work) bringing together Mother 1 and Earthbound, and Porky bringing together Earthbound and Mother 3. Plus, I'd like to see more playable villains, and both of them seem like they'd be interesting.
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Deathborn - even though I'm sure more people would prefer Black Shadow getting Ganondorf's moveset, freeing Ganondorf up for something that actually represents how he fights in the Zelda games, it doesn't seem like the development team is going to change Ganondorf's moveset. Besides, I feel like Deathborn has a more interesting design.
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Tiki, Anna - I'm not overly familiar with Fire Emblem, but I'd prefer someone like Tiki, who has a completely different way of fighting compared to the other FE characters, over someone like Roy (do we really need a third character who plays identically to Marth?). It helps that Tiki and Anna are both characters who appear throughout several instalments, something which (by my understanding) is relatively rare in that series.
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Captain Syrup - it would be nice to have Wario Land actually acknowledged, seeing as they removed the only attack that Wario had which related to it in this game. Plus, as a character who's fought Wario several times, it seems like she'd have more to work with than the various micro-game hosts of WarioWare.
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Plasm Wraith - as far as Pikmin enemies go, it easily has some of the most diverse attack patterns, taking on qualities of all five of the Pikmin in Pikmin 3 as well as being able to shape-shift, and it helps that it can shrink, getting to about the size of a captain by the end of the battle.
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Medusa, Hades - I'd like to see Medusa get acknowledged, seeing as she's Pit's classic villain (plus, she got screwed over a lot in Uprising), but Hades also seems like he'd be a fun addition.
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the seventh party member - I haven't actually recruited this character in Xenoblade yet, but by my understanding, this character seems like one that would be interesting to play as, and they seem like they'd have more to work with than the other party members from Xenoblade (though, again, this character hasn't joined my party yet, so I can't say for sure)
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Bald Bull, Mr. Sandman - Bald Bull is one of the most iconic and recurring characters in Punch-Out outside of Little Mac and Doc Louis (plus, he's got a super move that really stands out as far as the boxers go), and Mr. Sandman is legally the closest that Nintendo can get to having Mike Tyson in the game.
(retro):
Sukapon, Mike Jones (and Ice Climbers) - it would be nice to see Joy Mech Fight, Nintendo's first attempt at a fighting game, getting some recognition, and while Star Tropics wasn't released in Japan (meaning that, as far as the Japanese public is concerned, it probably doesn't exist), it would be nice to see it get recognized, seeing as it didn't even get a sticker in Brawl. Ice Climbers are pretty straightforward, seeing as they're the sole representative of their franchise and were cut for questionable reasons.
(other):
Wonder Red, Isa (Sin & Punishment), Isaac, Ray (Custom Robo), Inkling - all of these are action-packed franchises with a wide variety of characters, and the first four were overlooked in favour of some questionable choices. I'm aware that none of them sold particularly well, but if sales meant anything significant when it came to Smash Bros., we wouldn't have gotten Ness in the original, Marth in Melee, Shulk in this game, etc. I feel like they all deserve a chance at gaining the extra exposure that Smash Bros. brings, given that Nintendo barely advertised their games when they were originally released (if they were advertised at all)
I edited this post because I realized that I forgot the Inklings; I'm hoping that Nintendo uses this DLC as an opportunity to advertise Splatoon so it doesn't have the same issues that these other franchises have, and I feel like they would be quite interesting to play as.
(third party)
Bayonetta, Rayman, Terra Branford (and Snake) - Snake's a veteran with a completely unique moveset whose series invented an entire genre; I really want to see him return, more than anybody else on this list. Rayman and Terra represent two of the biggest third party companies which don't already have someone in Smash Bros. (went with Terra since she's the main character of the last numbered Final Fantasy title on a Nintendo system), and Bayonetta represents a well-liked third party company that, while not as major as the others, has produced consistently good games (even the Legend of Korra was really good, given that it was a licensed game on a low budget) and has supported Nintendo in recent years more than most of the big names when it comes to third parties. (besides, Nintendo has Bayonetta 2, which met near-universal praise, as an exclusive, and yet they haven't done much to show that off)
Admittedly, most of this falls into the "never going to happen, why would I even consider this" territory, but I figure it couldn't hurt to be thorough.