Power Stone has the advantage of being a fighter that moves in a 3D plane. I think that probably helps a lot with the dynamic stages as the parts of the stage are forced to cycle like Smash's changing stages.
This all sounds pretty neat, but aside from Adventure Mode, can you use these combined items in a vs. match?
The whole items thing sounds like it'd be a fun idea, but from what I'm watching in the Power Stone videos, the emphasis of the game is on the use of the items, and Smash's emphasis has never been like that. Take away the items in Power Stone, it looks like you lose a lot. Take them away in Smash and you can enjoy the game just as much, if not more so. This isn't to say Power Stone is a bad game, but it's a different kind of game.
And for my heat with SmashChu, I've been arguing with this guy for years, and I've seen him argue with other people in other threads and forums. He's so close minded that he insists he's always right in every argument without as so much of a thought from the opposing side. The arguments with him turn out the same in every way, regardless of the topic. I've seen people responding negatively to him just showing up in a thread. Do you remember Chu arguing with Toise about third party characters?