Rockaphin
Smash Champion
Looking at this, Villager actually jumps decently high after the balloons pop.Villager has Balloon Fighter's death animation from the NES game. Also, confirmed up special.
If he is able to grab the edge afterwards(I'm sure he'd be able to), I think the best way to recover in situations like that would be to stay below the ledge and work your way up. So if someone were to pop the balloons. The extra jump afterwards could either put you back onto the stage or grab the ledge. Just speculation though. I'm looking forward to the Villager.