I guess I'm kinda the odd duck of this situation when it comes to Steve.
Steve wasn't a character I necessarily wanted/expected, but I don't dislike him either. I can definitely see both sides of the argument, but I feel like my opinion comes from a point of bias, since I never intended to buy the Pass piecemeal, I love Smash regardless, so a bad business practice or not, I bought it day 1 and fully expected not to love or be on board with every character choice, and that's okay.
But when it comes to the visuals.... Maybe it's just me, but... I don't.... care? Like, to me, I've never really cared about how Smash looks visually, so that's never been an issue. Does Steve stick out like a sore thumb? Yes. Is he ugly as sin? Oh hell yes he is. Does he fit the artstyle at all? Not one bit... but I never cared about the artstyle of Smash to begin with either.
Could they have improved him? Absolutely, but in the end, they chose to keep him 1:1 faithful with his game, and honestly, maybe that's kinda just... the joke? Like, the trailer didn't shy away.... at all.... to imply how odd, ungodly and out of place he looked compared to the game, I feel like cleaning him up would lose a lot of that 'wow, he doesn't fit in at all' charm.
This isn't to say that one side is more valid than the other. If you don't like how out of place he looks, more power to you, likewise, if you think he looks fine, don't try to force others to see it your way, but as for me...?
Funny block man go nom nom nom