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DMurr
Shovel Knight is "SNES" style retro, which resonates with a lot of people who had the console growing up. His fanbase extends past the regular group of Smash fans, and into general gaming fans. A lot of people apparently think of him as a Nintendo inspired character which is why they thought he should be in Smash (plus the indie representation people). If you think of it like that it makes sense why he's popular.
My main issue with Shovel Knight is that he has one game, from an indie developer and is obscure if you consider a worldwide view. 3rd Party characters are a special guest in Smash, and having Shovel Knight in kind of ruins the special recognition that the honor is. Like I consider 3rd party Smash characters as the hall of fame of video gaming, and right now we have no idea if Shovel Knight is going to have any long term relevance like PacMan or Ryu. He's had a lot of crossovers, and DLC is coming for his game all the time + new amiibo so for an indie game he is one of the top contenders.
I've been against indies in Smash since day one (I wrote that post about Indies not being likely in Smash at the start of the ballot if you remember) and my feelings haven't changed.
I'll accept Shovel Knight if he's in it, and I'm sure he will be fun to play as. In the end its probably the interesting/ unique aspect of Shovel Knight that got him in. How many other character's in the roster use a Shovel as a weapon? Are Knights? Are light blue? That's probably why he got in (besides the large amount of suggestions).
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Aeris and I talked about how if SK is in, the two newcomers are 3rd party. It's almost a theme. Maybe they are using Dlc for 3rd parties because it's easier to negotiate the rights/ distribute the profits. After all they did stress you could vote for whoever you wanted to.
I get why people are both upset or happy that he got in (again, if the rumor is true). At the end of the day, it's not the end of the world.