0_0'? Wait Melee was made in under a year? That doesn't seem that likely that Nintendo did that in such short time and if they did they should have had no problem having SSBB out on Dec. 3 after 2-3 years of work.
And as for delaying Brawl even though they had a lot more time to develop it, this is the first Smash Bros game so far that has not been tied down by strict deadlines and ending rushed.
Now, in relation to characters, I don't think a whole lot more development time, a 8.5 GB disk vs a 1.5 GB disk, and all of the other arguments toward 50 characters (or more) really apply. Although characters are probably one of the largest aspects of the game, I think that Sakurai would rather expand and go mode crazy than character crazy. The more modes, the more there is to do, and the more replay value the game has.
Sure, if Sakurai really wanted to we could have Smash Bros Brawl, a 150 character roster, and still have massive features like SSE and stage builder, but it would lack elsewhere, probably in game depth beyond "just multiplayer" like Melee had. Not that it's multiplayer was not great, but Smash Bros has much more potential than that.
Besides, character balancing would be ridiculously hard and require a ton of real testing, not just figures on paper to determine balance. Once you hit forty unique characters, it's hard to make characters unique in terms of balance: priority, strength, speed, weight, there are only so many combinations you can make, and then the moveset still has to be taken into consideration with that balance... just not easy at all.
So... I stand by my approx 35. Maybe a few more, maybe even a few less, but that seems less likely.