ahhh I like this guy already.
@Spydr: This is true but in cases like Toon Link they have material to work with has been overlooked. I guess a more extreme exmaple that fits your exact criteria is Ridley, even though he is iconic, popular, and easily recognizable what's to say they won't be overlooked again? I'm just throwing that's a possibly. Even though I support Toad I can see where Short's is coming from.
Hopefully Shorts is wrong.
True, but you could say the same for literally any character. The thing about Toon Link is that, despite his vast potential for a unique moveset, Sakurai still seems to see him as a form of Link (which he is) and the replacement of Young Link in Melee, which was why he was doomed to be a clone. Toad, on the other hand, is more unique in shape than most of the current roster. Also, how many more times can Sakurai overlook characters like Ridley? With fewer viable characters to choose from, he's going to have to force them in there at some point. Don't forget about characters like Diddy Kong, King Dedede, Wario, etc. who were overloked until Brawl. They still made it.
Sakurai could base his moveset and play-style off of his speed seen in Super Mario Bros. 2, as well as his surprising superhuman strength. We don't have many small characters who are speedy but also strong.
Basically, you could name any random Nintendo character and say that they have potential, and then someone else could go on to argue that "Sakurai might not see that potential." Well, he might not. BUT, he might. We don't know. That's why I usually steer clear of that argument.