i doubt sakurai would be mad/angry, more like heartbroken, but honestly one of his mistakes was trying to keep smash from having any competition what so ever, in order to do that, for one thing, he'd need to remove all scores, and all winner screens, make it so 4 oppenents are always playing at once(like wifi, but just everywhere, even in offline matches) and pretty much make it so items can not be turned off at all. this would in many ways not give folks much reason to attempt competitive play on it at all, luck would always be a factor, and you'd have no clue who'd win cuz the scores and winner screen were gone.
obviously that would tick alot of folks off, but really thats what you'd have to do if you wanted to stomp out for the most part, competitive play in smash entirely.
as far as character balance goes, he might or might not be impressed, put him against a Ice climber main, and he'd probably hvae a heartattack seeing just how broken they were.
TBH though, i think it would of been waaaaaay smarter and much better overall for nintendo IF they HAD actually looked towards the competitive scene for advice on brawl, least character wise, since brawl is the first smash that ever appeared online, its also the first one where casuals and competitive players have actually met up for the first time, many folks in the competitive scene, can't honestly tell me they havne't went into a basic brawl when bored sometimes, picked a character like snake, ddd, falco, or the IC, and used some of their crazy advanced moves, and/or cgs on folks in wifi, or just played really "gay" and campy like brawl is known for, things like these give the casuals who've jumped in there nightmares about characters they never once would of thought were that good
"oh look, he picked IC, dude, doesn't he know they suck?"
*after about 30 seconds into the match*
"WTF thtas not even fair, his Ice climbers are so cheap!"
"dude, thsi guy is hacking, he has to be, look at snake flying across the stage with his Up smash, wtf dude...wtf..."
( you guys can't tel me you've never done this one before

) "WTF why can't i break out of DDD's down throw ;-; he just keeps grabbing me at this wall here on shadow moses island thats not fair..."
certain things like that are probably the first things that the casuals think of when they run into competitive brawlers in bb, needless to say, for alot of em, it ruins the game for em.
if nintendo had given the competitive scene a chance with the game, they would of spotted alot of the characters problems quickly.