I really don't think Geno is the right character to represent the Mario franchise as a whole. He has been in only one game... one game out of more than 100 games in the whole Mario franchise. Mario, Luigi, Peach, and Bowser are major recurring characters who have appeared in almost all the games in the Mario franchise, both canon and spin-off. That's why they properly represent the Mario franchise as a whole. Geno never appeared in any spin-off games and he is not a recurring character (let alone a major recurring character) in canon games. Adding Geno would misrepresent the Mario franchise as a whole because customers and fans would question why he is there if he's been in only one game in the whole Mario franchise. Geno is overrated, even more so than Ridley because at least Ridley is a major recurring character in the whole Metroid franchise.
There are several things wrong with this statement:
1. The goal is not to represent the franchise as a whole. For the Mario franchise, Mario is the only character who can effectively do this. For example, if for some weird reason, Mario was cut from the next Smash Bros game and it just left Luigi, Peach, and Bowser, people would be scratching their heads and be like "Where's Mario? This doesn't make sense." If Peach was gone, it'd be acceptable because Mario would be there and that's all that matters. Peach and Bowser weren't in the first Smash Bros and there really wasn't a problem with that. This is how it is for all the franchises represented in Brawl except Fire Emblem and Mother who don't have stars that are used in every game.
2. He's not a reoccuring character because he's owned by Square Enix and, from about 1997until about 2003, Nintendo and Square had a bad blood between them thanks to FFVII (which was originally planned for the N64) and comments made by Nintendo's President at the time. That's also the reason why Paper Mario replaced Mario RPG because Square was originally involved but things became sour between the two companies after FFVII became a run away success.
Geno barely represents Square Enix well... Look I admire the blue doll and all, SMRPG was a fabulous game. But I would much rather see a different Square rep; like Slime, or Crono (especially Crono). I also think Paper Mario is more deserving of a slot, given the fact the series is still ongoing. Plus PM is long overdue for some type of acknowledgment beyond trophies... No stage or music Sakurai?
His purpose wouldn't be to represent Square Enix as a whole, as I've said many times before. If added, he'd be with the other Mario characters. He'd be more like a nod to Square Enix seeing how him and Mallow were the first characters created together by Nintendo and a third party.
See? Sakurai said "only the most dedicated fans will recognize" - of course, this means fanboys. Only fanboys would know obscure characters like Geno.
Casual fans of the Mario series would most likely recognize characters like Mario, Luigi, Peach, Daisy, Wario, Waluigi, Toad, Toadette, Yoshi, Birdo, Bowser, and Bowser Jr. from contemporary canon games and/or spin-off games.
Fanboys of the Mario series would not only recognize these characters but also the obscure characters from past games (from about 10 to 20 years ago) like Mallow, Geno, Wart, Tatanga, Donkey Kong Jr., and many more than I can list here.
There lies the difference between fans and fanboys. Sakurai is looking to make both groups happy so he adds most-famed characters as playable characters and obscure characters as Assist Trophies.
A fanboy is not someone who knows a lot about a franchise, a fanboy is someone who tries to make everyone else think that their favorite game, franchise, team, company, etc is the best thing ever and, if they don't agree, they jump down their throat and basically try to disembowel them with words until they conform to their way of thought. A lot of people get this wrong and it's tiring especially to people like me who are very knowlegdable about most Nintendo franchises in general.
Anyways, this isn't exactly true. Look at the assist trophies in Brawl and divide them into decently known to obscure:
Decently known:
Samurai Goroh
Knuckle Joe
Andross
Lyn
Mr. Resetti
Excitebike
Little Mac
Stafy (in Japan)
Waluigi
Metroid
Tingle
Kat and Ana
Jeff
Nintendog
Lakitu
Hammer Bros
Isaac
Shadow
Obscure:
Dr. Wright
Devil
Gray Fox
Saki
Helirin
Jill
MK III
Advance Wars Infantry Men
Barbara
18 are decently known, 9 are not. About 66% would be known by most fans. Also, as always, when it comes to the roster, you still have people like Mr. Game and Watch, Pit, and the Ice Climbers who had most people going into seizures trying to figure out who they are so not everyone who becomes playable popular on the level as, say, Mario and Sonic. If you wanted to take the arguement further, it could even be argued that Olimar, ROB, Ness, Lucas, Marth, and Ike are obscure too because they wouldn't be recongised by the casual audience that would only play the most popular games.
All in all, people need to realise that SSB4 will more than likely wander further into obscure territories seeing how a vast majority of the major characters/franchises have already been represented in playable form. Basically, we're getting to a point where more and more of the additions will reflect the the more dedicated fans than the people who play Mario Kart whenever they go their cousin's house for the weekend.