Undertale always struck me as having enough depth that you didn't necessarily need a full-blown fighter to do it justice. The Sans Mii costume is great as is, but there's even more potential with a stage and assist trophies of all varieties that could work with the game's general themes.
Many of us used to regurgitate the very same thing about Minecraft, a case where this is arguably far more accurate since Undertale is a strongly character driven game, and I'll confess I personally got proven wrong on that. Hypothetically there are dozens of series that can be done justice without a character, but if that game is full of popular characters then it feels moot to say this. There's a universe where Animal Crossing could still be sustained by stages and assist trophies but I'm much happier being able to play as Isabelle than not.
I'd be satiated with nonplayable Undertale content myself, because I'm not gonna act entitled over any guest characters really. I'd gladly enjoy new remixes of Undertale tracks, a wonderful stage with cameos, a Sans Assist Trophy, but if we were getting all that it's hard not to wonder why we didn't just go all the way. The options are there and people actively want to see it, giving it all this fanfare proves it would be deemed important enough to have around anyway.
the fact that he has 1 HP and 1 ATK and is considered the weakest monster makes me think Toby might want to keep that idea intact?
Yeah I won't really fight anyone on their personal preferences, but I do want to highlight this point because I don't think it's as big a deal as it's presented to be. These are the kind of character traits that are efficiently and more abstractly represented in a different context. Sans having 1 HP in Undertale translates easily to making him an uber glass cannon character like Mr. Game & Watch. His 1 ATK trait likely translates over to making many of his attacks do multiple rapid hits, the same workaround that is used in his boss fight. If Toby wanted to be a stickler about these specific details then so be it, but I would be surprised if there was a lack of flexibility or understanding in how certain ideas just don't work 1:1 in a fighting game, but can be represented in essence.
Although what I'm recognizing from some of these past messages though, including my own on reflection, is that I don't like that we keep putting (hypothetical) words in Toby's mouth more than what I'm used to seeing in reference to other collaborators. I was just trying to acknowledge the way that the player characters in Undertale are typically treated with less general marketability or crossover appeal compared to established faces like Sans or Papyrus. The Lighteners point is something I had in mind, but Sans has more merchandise than nearly any other character so clearly there isn't all that much reservation about putting him out there specifically. And then working with accuracy to his lazy nonchalant nature is part of the fun of crafting a character-driven moveset around such a distinct personality. That's a perk, in my opinion.