The newer games in the franchise get the character models stages items and all of that other crap you mentioned only because they are new and more recognizable. They still pay attention to the older games even if it doesn't seem like it. That's why I think that the reps we will get will be characters that rep the franchise as a whole best. About old link being in 64 once again it's the same character just older.
Since you've conceeded that character models, stages and items from the newer games get in because they are more recagnizable - isn't it conceivable they they would also include a new and recagnizable character like Midna over an older, less well known character like Vaati?
Not to be rude, but how do you know that the Smash team pays attention to the older games? Judging from the Zelda content that has found it's way into Smash thus far, all indications are they they favor the newer games in the series.
Technically, OoT Link is a serparate character entirely from the Link in all other games (with the exception of MM). True, the Zelda series is unique in that it has multiple individuals with the same character traits, but if they wanted to choose a Link that best represented the series as a whole, why go with Old Link and not one of his younger models?
No what I'm saying is that they couldn't think of many moves for Zelda and then they remembered Shiek and the idea of a character that transforms to fit the situation was born. That seems more possible don't you think?
It's hard to say for certain, to be honest. But the fact that they spent so much time on a playable character that wasn't really a character at all, and had only appeared in a single game suggests that the Smash team was more interested in representing OoT than they were representing the entire Zelda series. If they wanted, they could have given Zelda a completely made up moveset (as they did with Captain Falcon) that would have represented ALL the Princess Zeldas - instead they included abilities that were unique to Zelda/Sheik from OoT.
I once again disagree, just because they had a character model doesn't mean they only rep the game the model is from. When a character is chosen for smash of course they will go with that characters most recent look(if they have one) but that doesn't mean all of the other games don't count.
While you make a strong argument for why the Smash team SHOULD remember the older Zelda games, there is simply no evidence that they have done so in the past or that they will so so in the future. Considering that they have never included a Zelda character, map or item in a Smash Bros game that wasn't taken straight form the most recent games in the series - it is very possible that we will see the same scenario play out in Brawl.
Recent looks is what Smash characters will get. The only exceptions being if that particular character has no new look or is most important and popular in an older form. An example of the second one would be Skull Kid.
For all we know, you could be right - but there is no way of knowing for sure. What you're advocating is not a bad way of selecting Zelda representatives - but there is no evidence that Sakurai or his team share your opinion. All we can go on is what has been included in past Smash games - and what is there shows a clear bias in favor of the newer Zelda games.
That bodes well for the main character in the most recent Zelda game: Midna.