Balloon Fighter was not the only NES character battling Ice Climbers for a spot in Melee. Sakurai considered Bubbles from Clu Clu Land, one of the Excitebikers, and the guy from Urban Champion. Pit wasn't even considered at all. It is all there on the Ice Climbers' page in the Melee Dojo (written in Japanese, of course). Balloon Fighter was never in the beta version of Melee. If he was, don't you think we would have seen pictures of it years ago? Also, if Sakurai seriously considered Balloon Fighter for Melee, don't you think he would have added Balloon Fighter in Brawl?
As for two retro newcomers for SSB4, I'm hoping that Takamaru (NES) and Duck Hunt Dog (WTF) would get in. Takamaru is more likely now than before, thanks to his playable appearance as a guest character in Samurai Warriors 3 for the Wii. I seem to recall Sakurai saying he would consider adding Takamaru if he had another game. Maybe Samurai Warriors 3 could sway Sakurai enough to finally add the samurai. I mean, Takamaru may be still offically Japan-only and retro but his appearance in Samurai Warriors 3 might help him get international attention from today's gamers. So even if Takamaru doesn't get a sequel to his NES game before SSB4, he might still be recognizable and popular due to Samurai Warriors 3.
Duck Hunt Dog is just for the lulz. It would be very WTF-ish if he had a moveset that involved the unseen hunter from the fourth wall (the Duck Hunt player) using the NES Zapper (seen pointing at the stage from the fourth wall) to shoot at wherever the dog is pointing. Hunting dogs point and the hunters shoot, get it? It isn't as complicated as it sounds. It would just look like the dog used explosive magic. Example: The dog points up, a small explosion similar to Zelda's aerial up move appears just above the dog's pointing finger. Of course, the dog's moveset should also involve ducks (Fly Away for recovery) and clay pigeons. After all, he is not the Duck Hunt Dog if he doesn't have ducks in his moveset.
Before anyone brings up Little Mac, I don't consider him retro anymore. Before Brawl, I would have but not anymore since his series was revived on the Wii. Still, even if Little Mac was no longer retro, he would still be grouped with the other NES characters like Samus, Pit, and Ice Climbers on the character select screen.
Moving on to Tingle, sure, he may look weird or creepy to most American fans but the Japanese fans love him. Even the European fans like him enough for Nintendo to bring Tingle's game to Europe. Smash 4 is not going to be exclusive in America. It will be in Japan and Europe, too. Why keep Tingle out just to make American fans happy if it isn't fair to Japanese and European fans? Unless you want a special American version where the roster is the same as both Japanese and European, only without Tingle. If you don't want Tingle, then don't choose him on the character select screen. I don't want Sonic and Snake so I don't play as them (I play as them when I'm bored or when I choose Random).
Sakurai doesn't always listen to the majority. He wasn't even going to add Sonic until Nintendo (not Sakurai) contacted Sega and asked them for permission to put Sonic into the game. He do listen to his fans, both majority and minority, not only the majority. If he listened to the majority only, we wouldn't have gotten Ice Climbers, Falco, Pit, Wolf, Zelda, Sheik, Young Link (they weren't very high on the Melee poll as they all had less than 10 votes). Interestingly enough, Sakurai wasn't going to add Ganondorf in Melee even though he was the most wanted Zelda character with more than 30 votes and added him only because he had a similar body build to Captain Falcon and he needed someone to buff the roster size within the time constraints. Like Sakurai said, a roster that consisted of nothing but the most wanted characters doesn't interest nor excite him. You remember my "perfect" SSB4 roster? The one that lacked pizzazz?
All 35 characters plus Bowser Jr., King K. Rool, Toon Zelda, Ridley, Little Mac, Krystal, Samurai Goroh, Mewtwo, Roy, and Mega Man.