I'll put it this way. For all intents and purposes, Scrooging is unbeatable. It's not only powerful on its own, but it is a free extension tool for people to surpass ledge grab limits while staying perfectly safe.
I would have no problem putting restrictions on a character IF they worked, were easy to enforce, were not numerous, etc. The one solid restriction put on MK is IDC (and extending the cape period). Even this has slight problems in that his cape naturally extends when he touches the ground with it, and that you could get away with extending the cape distances if the opponent/referee isn't sure exactly how far it normally goes or how long it lasts. You can also extend it with the control stick instead of the Cstick but that's more of a minor clarification issue.
However, past this, there is NOT a single good restriction on MK. At all. Ledge Grab Limits for example are subjective and matches can be directly influenced sharply by what number you pick. You can either pick a number too high, and MK is not affected at all, or you pick a number too low and gameplay becomes painfully restricted or people get creative and find ways to bypass the LGL (AKA scrooging or air camping extensively or gliding out to the boundaries and coming back to the stage, going under the stage and using reverse shuttle loop, whatever). Another problem with them is that there is no national standard when it comes to the number you should use. Some regions have it low, some have it higher, etc. For a rule that is designed to be this important and regulate a game breaking aspect of a character (assuming you are only applying a LGL to MK himself, which... I'll get into), you should NOT have these varying and conflicting numbers used. It would be like people having different rules on how long you could extend the cape before you are DQ'd or people not being sure whether you should be allowed to EVER glide under the stage. If you come to a decision, it needs to be common and the accepted standard. When it comes to the LGL, there will never be a standard even if we the SBR throw out a recommendation out there.
Now, before someone plays the "Oh well the timer is subjective too, and stocks are subjective too, and they can have an impact on gameplay, bajsdkljalda" card, we need to realize the difference between those kind of rules. Rules like that are meant to be the ground work for competitive play. You set a standard, that most people can agree on or with or will accept, and you have it commonplace used. The idea is to have a general layout for tournament play that will allow it to function well. Doesn't have to be perfect, and will not be perfect, but that is the goal. The difference between that and something like a LGL is that you honestly don't have that many varying views or beliefs on what is the best approach/numbers to use, and that you aren't applying them as regulating rules for specific characters, or to specifically balance the game. You DO want a stock+time combination that keeps things well run and the metagame healthy as possible, but you don't institute stock+time BECAUSE of balance or regulation.
I'll put it this way: Stock+time is like the Constitution (or the idea of it). Sure, it may be subjective in what you include or how much/how little, but it was established as a framework for society to progress. LGL would be like Healthcare Reform. Something needs to be done about the current system (MK being able to do it freely), but at the same time there are strongly varying views on what needs to be done. Whatever you decide to do DOES have a huge impact on society/metagame/whatever metaphor you want to associate with it. People aren't gonna agree on 1 decision, and you can bet different states and regions will have different systems or views.
Now, scrooging. Let's say you want to limit that to help combat people beating the LGL. What do you do/what rule do you suggest? No gliding under the stage period? 2-3-multiple times and then you have to be hit or hit the opponent? Have a GUL (Glide Under Limit)? Seriously, there's no good way to say or define scrooging and try to limit it. You either come up with something stupid like MK can't ever glide under the stage, or something that probably won't affect him that much.
Eventually, it will progress to MK players learning how to air camp extensively to waste out time, and then people are gonna cry out for something like an Air to Ground Ratio Limit so that he can't spend all his time in the air trying to run out time. If you want to properly restrict MK, you are gonna have to put up with multiple unattractive rules in place against solely him. Maybe more rules than you really want. Maybe the community truly thinks the best route to take is just restricting him extensively, but I look at other fighters and I don't think I see a single instance where a serious community decided to go down this path, or at least as far as we are planning to take it.
Regardless of what you think, what is clear is that MK with no holds barred is by far clearly broken and something has to be done for the health of the game. You either have restricting him or outright banning him. Those are our only options unfortunately.
