diddy is horrible with wavedashing. Sure he can pick up his bananas very well, but it gives other players a very good chance of stealing them.
Hmm... good point.. I never thought of that. Not only that, but, the opponent can also "Glide Toss" the banana (I put it in quotes because they're really wavedashing towards them and then throwing the banana shortly after). Aside from that, Diddy has some potential he didn't have before. You can down Glide Toss the banana and WD towards it to regrab it and repeat the Glide Toss the same as before as a mind game. You can even Glide Toss the banana at them and then WD in to grab, Fsmash, Dsmash, Usmash, Ftilt, Dtilt, or even WD into an aerial attack which could then be canceled by the S-Cancel if you fast fall it, at which point you could WD again either back for the banana or forward.
Diddy HAS potential but, it doesn't necessarily make him COMPLETELY horrible. He'd be better than Meta Knight, who suffers probably the worse thing imagineable with S-Canceling and WD'ing on.
But, I suppose it depends on the players and I haven't really been using Diddy with the codes on so, what do I know. It's best to see how this works with other players and see what happens at Chibo's side tourney for this.