Palutena still requires you actually turning the toggle on, and if the toggle's on then every other character has a right to use the options available to them (easy enough with 3DS uploading).
That just demands you make the ruleset needlessly complicated for one character, while also being unfair to everyone else.
Who cares? Why? Seriously, why should we care?
It's a toggle. It's a
menu option. It's not what matters in-game. It's not even an important one like stock where no matter what you set anything else to or how you ban anything else, you're playing something completely different. As PD pointed out, it's
trivial to write in the ruleset, "Custom moves are banned for all characters except Miis and Palutena". Easy, one line, totally not complicated, everyone else who wants customs can explain their plan to unlock all customs on all WiiUs currently slated to be present at the event or share their 3DS with every other player there. Who
cares if it's the difference between "We toggle this menu option to X" (you still have to explicitly state the rule with Miis either way, because
nobody knows how to deal with Miis otherwise) or "We allow X"? Why does this matter? Why does this matter
more than essentially adding a new, unique,
viable character to the roster?
None of this makes any sense whatsoever to me.
You want complex? The average ruleset in
any smash game has a two-paragraph segment dedicated to "these are the stages we are allowed to play on during round one, this are the stages we're allowed to play on at all". This list varies greatly from region to region, indicating that there is no clear standard whatsoever. And this is exactly what we see when we zoom in. We ban countless stages, often for completely arbitrary (Mario Circuit "interrupts gameplay too much", which is a completely meaningless accusation), baseless (Peach's Castle is broken because reasons, I guess?), or unfair/favoritistic (Metaknight in Brawl, 'nuff said) reasons. SoCal basically just banned three stages because they essentially didn't like
transitions, which is like banning five characters in street fighter because you don't like grapplers. HEY MORONS, THEY'RE A PART OF THE GAME AND THEY'RE THERE FOR A REASON. There's not even a game setting for that, we just agree on it (or more commonly don't and just go by whatever the TO says) arbitrarily because we have to have
some way of doing things.
By comparison, saying, "customs toggled ON, all custom equipment is banned, all characters except Miis and Palutena locked to 1111" is simpler and
considerably less arbitrary: we have good, clearly explained reasons to lock every character out of using customs that simply do not apply to Palutena, and we have
extremely good, clearly explained reasons why legalizing custom palutena is a good thing - to wit:
adding a completely new, extremely unique viable character to the game is good enough for people to pay money for in most cases. Hell, adding a completely old, non-unique, non-viable
clone character to the game is good enough for people to pay money for.