Top 8 in Melee is almost as crooked as Brawl top 8.
Elessar put it excellently, it's not balanced really at all, but the skill gate that separates the the top players in Melee is much more efficient than Brawl. If you aren't actually good with movement, technique, DI, and strategy in Melee, Fox will not win you any matches. Fox gets chain grabbed and combo'd to hell and back, but they upper range of his abilities make up for that in dividends if the player is good enough. Link of characters can pull of some amazing maneuvers given the right player, even in some of his worst matchups.
Smash 4 is better balanced than Melee (customs non-withstanding), but the overall requirement of skill needed to play at a competitive level is considerably lower. My biggest problem with Smash4 right now is that there is very little CQ pressure game, and shields are too good. Because of this characters like
have very little they can legitimately do against an opponent who walks up and guards, then jumps OoS when you attempt to grab.