People complaining about balance, it's the FIRST DEMO. Megaman and FitTrainer don't even have multi-frame idle animations yet, and balance is usually the LAST thing done in a fighting game. A lot of moves will look clunky with misplaced animations because the game isn't done. Sure it's a playable "game", but some people really need to learn the development process of most games.
Step 1: Make a barebones environment (physics, playfield, maybe a character or two) where you can move a character around. A "Hello, World!" essentially.
Step 2: Build up the environment to support the addition of more content (another set of barebones characters, graphics production starts)
Step 3: Create the main features of the game (ledge grabbing, blastzones, and items probably started here for smash)
Step 4: Build content based on the main features (characters that can interact with everything made in Step 3), and begin bug testing with such content
Step 5: Polish this content into a playable demo for people outside the development process, a basework for the rest of the game. Considered Beta V.1
<------ THIS IS WHERE SSB4 IS
Step 6: Take playtesting data and observations from step 5 and make changes. Repeat step 5 until satisfied with feedback. This is called "making the game feel good".
Step 7: Polish the game for final release (all animations, physics, characters, and bug fixes finalized).