In photography class at MSU all the students had to learn how to color balance their printed pictures for a true gray. We would use photoshop to make the image on the screen pure black and white, but the printers didn't necessarily print it as a true neutral. We were taught that the fastest way to making a true neutral print was to fix one small thing at a time. If the image looked a little blue, throw a smidgen of yellow onto the image and reprint. If it was too dark, throw a little light on it. If it is blue, and dark, just change the brightness and check to see if you still need to change the color. Oddly enough, sometimes even if it seemed too blue in a dark image, it was corrected by just adding a little bit of brightness. But if you tried to tried to correct things at once, then you could make the color balance worse than you started out with, and it takes more prints when you backtrack.
The same thing goes with game balancing, but few companies seem to realize this. Often times WoW patches had DRASTIC changes on characters, that would often completely overhaul them, and they went through patches like crazy. Instead of trying to fix one thing at a time, they almost always adjusted 6 things at a time, and they usually weren't minor adjustments either.
If companies went about it wisely they would just be patient with it and look into all the minor things they could adjust easily that would yield a more balanced game. For example, a simple way to fix Sheik's fair would be to just make it send you pure horizontal like all the other fairs in the game. Then it would still be an excellent kill move and it wouldn't be something that would make Sheik suck, nor would it be overpowered. Since that is her number 1 finisher, that simple change would go a LONG way towards overall balance. That would be a small change that could work with a patch and would more than likely be accepted among the community.
If they patched things like that, in conjunction with the fact that they rarely patch the game, it will be obvious what little things should be adjusted given the time period. Over the course of the games duration a lot of balance issues would be solved without a character becoming overpowered or useless in the process.