I honestly think Pokemon's fine in terms of representation. I know there's a lot of Gen 1 but I think the Pokemon who are currently in more than justify their spot. You obviously have to have Pikachu, seeing how he's the mascot. Squirtle and Charizard are also incredibly popular and had a large role in the anime, so they're fine. Ivysaur's a little strange but he's fine seeing how he's essentially subbing in for Bulbasaur, the most popular base starter and the final pillar of Ash's Indigo League team. Mewtwo's one of the few legendaries that can be realizably added into Smash and is also very popular.
Jigglypuff is the only iffy Gen 1 Pokemon, but she made sense when she was added and she's become a series tradition. She's a lot like Sheik, a strange addition in a vacuum that's been in Smash so long it would be strange not to have them.
Add in Greninja and Lucario, the first and second most popular Pokemon period, with Pichu, an easy to develop Pikachu clone, as a bonus, Pokemon's doing pretty alright. The only Pokemon I'm not a huge fan of is Incineroar but that has a lot more to do with execution than concept alone.
That being said, Toxtricity would be rad, Lycanroc would be a dream come true, and I do think we'll get a Sword/Shield Pokemon in the next Fighter's Pass. However, if this is all Pokemon is getting, I'd be pretty satisfied with this line-up.