Actually, Saurai MAY CARE TO AN EXTENT about over representation, I recall reading an article where they used those exact words, but I don't think it was simply oriented towards characters. I think it was just trying to not have TOO MUCH MARIO, or ZELDA (Something he actually says he DOESN'T WANT) content in Smash. Trying to keep it even in that respects. Nothing like Smash congress which so many people like to turn this into.
My problem with Toad is that I just don't see him too much of a fighter, and his roles are always this background character, or a placeholder for another character. In NSMBWii, toads were simply Mario and Luigi. Nothing different about them. In SMB2, Toad (and Peach in a lot respects) got their attacks simply from the character's they replaced.
Sakurai only seems to bring up Toad being: Fast and Strong, good with Karts, and being peaceful.
I would also like to note that Krystal's trophy is the only SF character to reference her skills in combat. Peppy and Slippy do not.