I feel that a motorbiker character would be fun for a lot of people. It's fine to not personally like a character, game, or moveset concept, but not personally liking them is not a substantive argument against an addition.
On Mach Rider, yeah, the game is just not on par at all with Excitebike. The only reason people push them is being purportedly "more interesting" moveset-wise. Though honestly Mach Rider basically just has two additional things: firing a gun and the whole "burst into pixels and reform" thing. The former is rather inessential to the motorbiker niche and at worst might take away from the emphasis on zooming around the stage; it's not clear that the latter would even be in the moveset and if it was it would probably be like one special move. The oil slicks or whatever could be used just as well by Excitebiker.
I think Mach Rider is just more conducive to popularity since he has a "cooler" design, wields weaponry and gets off the bike (though I guess technically Excitebiker has as well). Once upon a time people also mused about that series getting a revival.
Though tbf, Excitebike has continued to get games, albeit infrequently. Does that still make it a retro?
And there was also the Grinch leak, though Mach Rider wasn't really most peoples' focus on that one.
Personally I think Sakurai would have an easier time creating a moveset for Mach Rider, but sure, both can be feasible. However... neither really stands a chance without new games, let's be real.
I have no way to prove this, but I'm willing to bet that Sakurai wanted a "NES exclusive" character for the rep. Of Myths and Monsters might have affected that.
There's also the possibility that Pit wasn't surprising enough. Pit was generally popular. Sakurai may have wanted a more left field pick.
On top of that, from the candidates we've heard Sakurai broach for that spot, it seems like it wasn't just NES, but it was mostly quite early NES. Ice Climber, Balloon Fighter, Excitebike, Bubbles, Urban Champion.
To be fair, Ayumi was considered as well. Though that may not necessarily have been for the retro spot, it could've been like Marth, since FDC did continue onto the SNES, which... wasn't actually that removed from Melee's development. But I don't recall hearing about Pit or Mach Rider or Takamaru or Sukapon going up for that position.