Your logic is pretty flawed in most places at this point Wrecked, however I do agree that some characters need to be removed. These are only Dr. Mario and Pichu though. Why not Young Link, Falco, Ice Climbers, Game and Watch, Shiek and Jigglypuff you ask? Well here's why:
Young Link: Believe it or not, Young Link starred in many more games than Adult Link did. I'm pretty sure Link was a kid in Legend of Zelda (NES), Zelda 2 (NES), and A Link to the Past (SNES), as well as Minish Cap (GBA) Oracle of Ages and Seasons (GB), Four Swords (GBA) and finally, Four Swords Adventures (GC). Plus, Link was no doubt a kid in Ocarina of Time, Majora's Mask, Wind Waker, and Phantom Hourglass. If this is all true, then Adult Link only starred in Ocarina of Time and Twilight Princess. See the logic here? Plus if you look into Young Link's available items and moves in his games, you could probably make ten movesets completely different from Adult Link's easily. With all thay being said, how would ANY other LoZ character replace him?
Falco: While it's true that there wasn't much the dev's could have done with Falco in Melee, three new Star Fox games have come out since then, and Falco's moveset could be derived from any one of them. Since command wasn't really different than 64 though, and Falco wasn't really IN adventures, Falco's moveset would have to be derived from Assault. This wouldn't be a problem though, since there are so many weapons in Assault. This means Falco's new moveset could easily be made, and it would be WAY different from that of Fox's. Wolf would be great, but I think both Falco and Wolf will make it, so what's the point?
Ice Climbers: Getting rid of the Ice Climbers makes no sence. Not only did they have an original moveset and were starting characters in Melee, but they introduced a new gameplay element to Smash never seen before. Plus, they're retro, and who doesn't love retro characters
As for Midna and Wolf Link, I would love to see them in Brawl, but replacing Ice Climbers for them is out of the question, especially since they would work together in a completely differet manner.
Game and Watch: Same deal with Ice Climbers, getting rid of Game and Watch makes no sence. He may not have introduced new gameplay elements, but he is arguably the most imortant character in Nintendo history. Sakurai would be insulting Nintendo NOT to put him in. Plus your argument with Pong and Pac Man makes no sence. If you can find a single character in Pong capable of fighting, then PM me and I will serve you hand and foot for the rest of your life and declare you the almighty savior Jesus.. but too bad that's impossible. As for Pac Man, how would a non Nintendo character replace Game and Watch? Balloon Fighter you say? No...just...no.
Shiek: I created a thread recently on a reason on why Shiek has a high chance of returning, and got flamed to bits, so I'm just gonna say that she has an original moveset, so why get rid of her? IMO, Shiek should become her own character since Zelda is all TP style, but since this is Smash, and not everything has to make perfect sence with the original game, I think how Shiek will reappear is up in the air for now. Zamus's only similarities to Shiek are her speed and perhaps chain move.
Jiggly: Huh? Why the **** would an original Smash64 character leave? You are out of your mind with this one, sorry..lol.
In the end though, I think all these characters will return simply because they have a unique personality. I think everybody with SOME kind of uniqueness in them will stay. Dr. Mario and Pichu are essentially alternate costmes, so there is no reason for them to stay.
