I'm seeing a lot of disappointment from some people over this announcement, not that I blame any of you, but I actually feel Steve may have just increased Geno's chances if you think about it.
1. Steve in Smash is yet another example of Nintendo listening to the fans. Even though Minecraft itself hasn't even been AROUND for as long as when people were requesting for Ridley, K. Rool, Banjo and Geno, he was still a request nonetheless and Nintendo took the action to get him included.
2. Not only that, but I have also seen people suggest that any third-party company that had a rep in the first Pass most likely won't get another one in the second Pass. Well, now Steve proves that even if a company had a rep in the first Pass, they can still get another rep, as Microsoft's first rep was Banjo & Kazooie in the first Pass, and now Steve in the second Pass. If Microsoft can have a second rep in this Pass, so can Square.
3. Steve also shows that even if you fit the bill for a Premium Mii Outfit, that character can easily get included as a character. I was guilty of this, but I take the L now that Steve is in the game. However, this proves that even though people think Geno works really well as a Deluxe Mii Outfit, he could still very well be a playable character, despite how fitting it would be.
4. The last thing is that Steve is NOT a competitor to Geno. It would be one thing if we had a Square rep or Mario rep revealed today that wasn't Geno, but that's not the case. Geno is still on the table as a potential candidate and just because Steve was revealed right now does not disqualify Geno from coming later.
That's basically my way of thinking. I may just be the most optimistic person in the planet, but I am just trying to look on the bright side of things. Steve being CP7 does not lower Geno's chances at all, but actually may increase it. I think speculation post-Steve is going to be rather interesting, and I am excited to continue speculating with you all. Just remember, it isn't over until its over. Geno's chances are still as high as they have ever been.