Well kinda... Ally wins a tournament with falcon, does that mean falcon is viable? No it doesn't. Armada winning with pit doesn't show he's a good character, but if you watch the match you see attributes of a good character come out. He can literally combo heavily off of every aerial, and combos heavily off of dthrow and uthrow. Arrows still seem like the best projectile in the game, and can combo into themselves and can combo into other moves. He has amazing range (fair and dair are ridiculous actually), and if you get good with pit, killing shouldn't be an issue... Bair is just as strong as it is in brawl, and with no momentum cancelling it kills even earlier especially with average DI.
I actually want to know why you think pit is bad, Yakal. What attributes make him a bad character? Cause to me he seems like a better sheik with a sword and multiple jumps.