Edit: This is why Falco should have his own tier. A good enough character to win tournaments across the board (better than CF, Peach, etc), but not on the same level as Fox, Sheik, and Marth.
Top Tier
Falco Tier
High, Mid, Low, Bottom
A Falco tier, I had the same thought... But, I don't think the disadvantages are too great to warrant his own tier. Sure he's not as good, but I don't think he's a tier apart from them. He has a slight, but definite disadvantage against Marth... Against Sheik, most people say Falco has an advantage, and against Fox, I hear arguments both ways and that it's somewhat stage dependant. (I'm leaning toward Falco having a disadvantage toward Fox, though,)
With the current list I think the tiers are too cut up near the top. And not cut up enough near the middle. Like I don't see why Marth and Sheik are grouped with Peach apart from Fox and Falco, when Marth and Sheik are clearly better than Peach; while a lot of people make cases for Marth and Sheik being the best in the game. Or why Jiggly Puff and Captain Falcon are in the same tier as Dr. Mario, when the best Puffs and Falcons are definite contenders against the best period, and the best Docs... not so much.
So with that, here is my list!!!
Top Tier(no particular order, except Falco is fourth)
Fox
Marth
Sheik
Falco
High Tier(no particular order)
Jiggly Puff
Captain Falcon
Ice Climbers
Peach
Upper Middle Tier(no particular order)
Samus
Ganon
Luigi
Doctor Mario
Mario
Donkey Kong
Lower Middle Tier(no particular order)
Link
Pikachu
Young Link
Low Tier(no particular order)
Zelda
Roy
Game and Watch
Yoshi
Mew 2
Bottom Tier (no particular order)
Bowser
Ness
Kirby
Pichu
I just went along with how I personally mentally group characters based on tourney results. I admit some of it's intuition. I also changed the names of the tiers as well. Just a personal preference. I could see them being changed to top, high, middle, low, bottom, garbage. I didn't order the characters either. That's not for me. Character ordering is something the back room could nitpick. I believe, though there will never be an undisputed consensus on the exact order of every character. The best we'll get is a rough estimate.
Some Forseeable Controversies
Jiggly Puff
I moved Jiggly Puff up. I did this because there are far more Jiggly Puffs placing in the top 32 at national tournaments than any other character below them. And Mango did win that one a little while back... I'm pretty sure on this one.
Luigi
Luigi, High middle? I’m pretty sure with this one, too. It goes against convention. Luigi has always been high low tier. But Luigi Ka Master and a few others have shown us that uses Luigi can place high at tournaments. I moved him up.
Donkey Kong
I moved him up to high middle. I'm not incredibly sure on this one, but I did this because of some of his top, and higher tier matchups. The best Donkey Kong players can contend with the best Fox, Peach and Falcon players. (I saw a Bum set against Cort... [best DK and Peach IMO] I forget who won, but it was close.) DK can also be dangerous to a Falcon (if he can get a grab...) I'm not exactly sure on all the match ups. I'm guessing DK does pretty bad against Marth and Sheik, but I know little about those match ups, I could easily see him going in either high mid, or low mid.
Link
Yes, Links got some things going for him, but against the top tier characters, some of the matchups seem really bad. (Fox, Sheik, Falcon,) and for some of the others there's a definite disadvantage (Falco, Marth).
Bottom Tier
I believe these characters are worse than most the rest of low tier to warrant their own tier. They are disadvantaged in about every match up.
Explanation of my tiers
Top Tier- (Deadly Characters) The best players of these characters, are the best players, period. Probably the majority of tournament players go these characters. They have very exploitable attacks, and few weaknesses. They are all very versatile, and have high potential to be used for gimp kills. None of them are significantly disadvantaged in any match up.
High Tier- (Beastly Characters) High tier characters all see frequent use at the highest level of play. The best players of High tier characters are also among the best players in general. These characters can generally be used to gimp and combo very well. What separates these characters from Top Tier characters is they have a few noticeable and exploitable weaknesses. The weaknesses, however, aren’t so over bearing that it’s impossible to win at the very highest levels of play. For example Chu Dat with Ice Climbers, and Mango with Jiggly Puff, have both won recent major tournaments with high tier characters.
High Middle Tier-(Alright Characters) High Middle characters see sporadic use at the highest level of play. Some of the best of high middle characters can compete with the best in general. What might prevent users of these characters from winning major tournaments is one to a few significantly disadvantaged match ups to characters of one of the above tiers. Players using characters of this tier have placed near the top at recent national tournaments. Examples of people who have done this include Hugs with Samus, and Luigi Ka Master with Luigi, Bum- Donkey Kong.
Low Middle Tier-(Mediocre Characters) The best players of these characters can compete at a very high level. The best players who use these characters can often make it into the top 32 of major tournaments. (Skler with Link and Anther with Pikachu come to mind) At the very highest level of play, users of these characters may be able to compete with some of the best of the higher tiers, however have an extremely difficult time against the best of the top tier users, which gives players of characters of this tier a very unlikely chance to win with on a national level due to top tier’s prevalence. Thus there are very few players who use Low Middle Tier characters in competitive play.
Low Tier- (Below Average Characters) Some of the best players of these characters can compete at a fairly high level. There are few examples of people getting crazy good with these characters probably due to an unwillingness to invest time with a character with obvious weaknesses. A couple of exceptions that come to mind, though are Gimpyfish with Bowser , Taj with Mew 2, and Mow with Zelda. The best players of low tier characters can hold their own fine with some of the best players from the above tiers, but generally have several severely disadvantaged match-ups against good players that use characters approaching the top. Since higher tier characters are what the majority of tournament players use, there are very few low tier characters seen in competitive tournament play.
Bottom tier (Bad Characters) These characters all have very exploitable weaknesses, that seperates them from the tier above.
With the tier list I’ve made I noticed that generally players that use characters of one tier can compete with characters of the above tier, and maybe with one or two characters in two tiers above, but beyond that there’s usually a definite disadvantage.