They didn’t care to restrain him, doesn’t mean they don’t care about him. They just let them make him cooler, more true to his character. I don’t see them telling Sakurai to lay off the dirty or weird stuff with Wario, giving him huge farts and chomping people (and healing a bit when chomping them in Ultimate).
I’m not referring to Reggie saying he’ll talk to Sakurai or Nintendo. I don’t even remember that, I’m talking about an interview he did with someone where Waluigi came up at/towards the end; the only thing I recall about him maybe talking to others about stuff and keeping things in mind is when he also addressed Mother 3. What I’m referring to was similar to what Sakurai said about Geno, that he really likes the character.
-actually, while I’m typing this, I found the excerpt from the interview. He doesn’t say favorite like I thought, and mentioned it all being up to Sakurai (which it was at the time), but did say he was his main, and that Nintendo clearly doesn’t hate him:
http://www.nintendolife.com/news/20...nt_waluigi_in_smash_bros_ultimate_says_reggie
And he’s still treated as a popular/big character choice in those games. Wario existed before the spinoffs. Waluigi was originally created to just be Wario’s tennis partner, but that doesn’t mean they don’t give a crap about him. Seems they’ve cared to keep him around for just about all spinoffs and his Smash appearances. Daisy existed before the spinoffs as well, but just to take Peach’s spot for one game and otherwise has only been in NES Golf and the other spinoffs (and had lesser appearances than Waluigi in Smash prior to Ultimate, with the exception of Melee where they were equal).
Geno still belongs to a first-party franchise. He’s my 2nd most-wanted, but I’m not gonna pretend he’s not on about equal grounds with Waluigi based on your logic. He would show the bond between them and Square, but he would still solely promote the Mario franchise (the other RPG games of which also have characters they supposedly don’t give a single crap about) and big fan requests just as much as Waluigi would, not really helping Square at all other than put in a word of good will most fans probably won’t care about (regarding getting interested in their games because of it) or even know about. If they wanted to help/promote Square even more, they could pick 2B or somebody (I’m not sure Sora would get in Geno’s way though, yeah one of the top dudes from Square created him and they developed the games with some FF crossover stuff but he’s still owned by Disney with Square getting no credit for him in merch and whatever; though there was the limited time deal in World of FF...). Waluigi would still be a fan pick like Geno and a good candidate for Mario characters; and Geno will surely come with new stuff like Byleth if his spot will be like Banjo & Kazooie’s, especially since SMRPG has plenty of unique stuff and so far it seems Plant will be our only bonus. Waluigi could come with some new stuff as well.