I mean Skull Kid is cool in Majora because he is being controlled by the Mask. He’s a distant threat who isn’t even that responsible for his actions as he’s a child slowly being corrupted by the Mask into being an Awful Person. And I’m not sure if that Dynamic could be replicating in something like a Fighting Game. Now Zelda One-Offs aren’t completely off-limits, Sheik exists, but I feel like there’s a better option for a One-Off Villain who wouldn’t risk losing what makes that character special while also having a better possible moveset.
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Vaati has been fought directly and is a more intentional villain in character than Skull Kid, and is also a Toon Character as a Bonus. I think you genuinely have a cool idea here and I think this would be a fun way to represent more of the Zelda Series since Vaati is technically not a One-Off. I think he’d be neat.