Ah, alright, thank you for clearing it up.
For what it's worth, I think we see this pattern repeated in almost every inclusion, especially third party, and we see Sakurai using similar wording very often about characters like Cloud. Smash is a Nintendo game, and as far as Nintendo's concerned, all of their characters and properties are iconic, so it's not outlandish to think we'd see characters like Ice Climbers or Pit when they hadn't had a game in 15 years, or for Rosalina to end up shoehorned into everything - not to mention that since they own the game and they own the characters, shoehorning
turns the characters into icons, but we only start to see secondary characters after the icon has been added.
Third party inclusions are more nuanced. There are some obvious choices like Sonic and Mega Man, because of course you wouldn't add a rep from their franchise without adding
them, I mean, their name is the title of the franchise! But let's look at Simon - two NES games, one SNES game (considered by many to be one of the greatest Castlevania games of all time). His name is on the box of the second game. He was in Captain N. Aside from Dracula, no one is more iconic to Castlevania than Simon, regardless of how many people think it'd be cool to have Alucard, you know, Alucard, from Castlevania 3!
Oh, wait, he uh... He looks like this nowadays.
Perfect.
The point to that joke was that Simon is an addition for the people who played Castlevania on the NES or the SNES. He's very limited in his movements and plays like a callback to when Castlevania was all 'vania, no Metroid. Richter, too, comes from that era and was an obvious echo pick because if you were growing up with Castlevania in the SNES era, you were playing Rondo of Blood or Dracula X. This is why not only do we get Simon, but we get gritty
manly
smelly
Simon ****ing Belmont. None of that Light Yagami looking, red hair having, anime pretty boy Simon Belmont.
Likewise, we always pin Persona 5 on being a Sakurai pick, but really... remember when I mentioned Sakurai's wording? "it’s hard to come up with a choice that’s not Cloud". That sure does sound like "who else but Lloyd". Long running JRPG franchises are known by their most successful, most iconic protagonist... and Joker fits the bill. Persona's been around for the entire lifespan of a lot of Smash fans, and they all have something unfortunate in common: the protagonist has no canon name. Manga or anime adaptations give them a name, and if they end up in, say, a fighting game, they get a name (that sometimes conflicts with the manga/anime), which is tough for Smash... but in Persona 5, not only do you have what is probably the most mainstream Persona title ever, but you have a protagonist that has a name that never changes, regardless of what you name him. He's Joker, and he's looking cool.
This "no name" business might be why we got Ness instead of Ninten - if you're a Mother fan, you know that Ninten's name is only Ninten because Nintendo named all of their RPG characters "Nintendo" until they ran out of spaces to put a name. It's been adopted as his real name nowadays, but the Mother 1 instruction manual actually calls him "boku" (Me/I, exclusively for little boys). You were supposed to name him to be you. Hell, even your partners in that game were supposed to be the names of people you knew, with the instruction manual calling them things like "girl" and "your friend".
This carries over to Terry, of course, because even those of us who don't play a lot of fighting games know Terry, or know of Terry. Terry's engrish was a prevalent joke on the internet nearly two decades ago and his moves like Buster Wolf and Power Geyser are the kind of things that get tossed around casually in such a way that you may have heard of them without ever knowing where they were from. But, seriously, look at these dudes:
Joe's wearing his name on his waistband and I couldn't have told you his name. Andy... exists. Any of these three can be considered the protagonists of Fatal Fury, but Terry's the only one that stands out. Sure, from his inclusion we got the famous line about how fun to play trumps recognizable, but that should be taken as a statement about the franchise a character is from, as well.
Speculation about Smash jokes about how a given character is a "nobody", or a "literal who" or any similar statement downplaying a character's perceived chances, but I think it's worth noting that Smash has no nobodies. Smash has some obscure characters from obscure games, but those characters are the face of their game. It's unlikely, sure, that if Nintendo wanted Sakurai to add Boktai to Smash, that he would add Sabata before Django (in a non-echo situation). You're scratching your head wondering who these goobers are, but that doesn't make either of them a nobody - you just don't know their franchise, but it's ok, because it's fun and not recognizable.
This is why I strongly stand by Spring Man being the ARMS rep. He's the face of the game to the people who haven't played it. The everyman, the Ryu, the Mario, the Captain Falcon. Sure, Min Min is the popularity contest winner, sure Ribbon Girl is on the cover, sure Max Brass is beefy and in charge of the league, but Spring Man is the character who was purposefully designed to carry the game on his back. He's the kind of character that Sakurai would say "who else" about.