Well I wouldn't go around CPing MK, G&W, or ZSS here, but it doesn't hurt too much. Banana game is limited, but not destroyed. Peanuts are pretty useful on this stage when they're on platforms above you, and using the banana pluck as an attack when opponents are on higher platforms than you is good to. Camping the middle platform works pretty well as you saw in the AZ Vs Snakeee vids. Oh, and if you smash banana pluck from the bottom middle platform, it goes all the way to the top. Don't ever go into the capsul for safety because you can be punished because some attacks go through the capsul and basically trap you. Let you opponent go in, or if you feel confident go in with your opponent with bananas, but some good move to hit throw the capsul for Diddy are Ftilt, Uair, and you can barrel into the capsul if it's on one of the higher platforms if you postion yourself on the far right/left of the platform below it. You can also plank the edge if you need to, midair jump the edge to go up and side-b to get down. Aerial is game is pretty good here, but you'll still get ***** by better aerial game. I <3 going down the platforms while Uairing or bairing.
Oh, and don't get hit by the lava.